A WILL states who assumes ownership of your assets and belongings after you die. If you don't write a will, your assets are distributed according to your state's intestacy laws. A will requires probate if real estate is involved.
A Revocable Living Trust allows you to take your assets and place them into a trust you create during your lifetime. The trust becomes the owner of your assets and manages them while you are alive. Since the trust is revocable, you can withdraw funds or dissolve the trust. Further, trusts can be useful if you become incapacitated or you want control over your assets after death. A trust allows you to avoid the probate, as long as your trust is created and funded properly.
A Pour-Over Will is a will that includes instructions for any assets that weren’t included in a trust. Those assets will become part of your estate at death, and you will need a will to spell out how to distribute them. Ideally, any significant assets are already in your trust, but it’s not practical to put every little thing you own in one. A pour-over will requires probate if real estate is involved.
A Durable Power of Attorney/Financial Power of Attorney is a written authorization to act on someone’s behalf in their financial, medical, or personal affairs. A Financial Power of Attorney gives authorization to act on someone’s behalf in their financial matters only. All powers of attorney expire at death.
An Advance Healthcare Directive/Living Will is a document that allows you to convey your decisions about end-of-life treatment ahead of time. It addresses if you 1) have a terminal condition, 2) become persistently unconscious, or 3) have an end-stage condition, you may direct that your life not be extended by life-sustaining treatment. Your directions go into effect if your attending physician and another physician determine that you are no longer able to make decisions regarding your medical treatment. As part of this living will, you may also make an election whether you desire the artificial administration of food and water under these circumstances if you are unable to take food and water by mouth.
A Transfer on Death Deed (TOD) allows one to transfer real property to a named beneficiary upon the death of the owner, with the owner retaining full ownership during his or her lifetime. A TOD avoids probate.
A Payable on Death Account (POD) allows one to name a beneficiary on other types of property, such as bank accounts, corporate stock, investment accounts, and other types of personal property, to take ownership upon the death of the owner. A POD avoids probate.
Remember the goal is to protect your legacy and make it as easy as possible for your heirs.
You are already taking the steps in the right direction by reading this article. For more information on protecting your legacy and creating an estate plan, please contact the Law Office of Cathryn D. Gibbs or book a consultation online.
DISCLAIMER: The information and materials on this website are provided for general informational purposes only, and are not intended to be legal advice. No Attorney- Client relationship is created by use of this website. Filling out a form on this site or sending an email does not establish a client-lawyer relationship. In accordance to policy, The Law Office of Cathryn D. Gibbs, PLLC does not accept a new client without first obtaining a signed engagement agreement.
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