What Is Estate Planning?
Estate planning is about protecting your assets no matter your net worth. Estate planning allows us to preserve the wealth accumulated during our lifetimes and brings with it the peace of mind knowing our wishes will be carried out in the event we should become incapacitated at some point. Estate planning also gives us the power to avoid probate.
Which Estate Plan Is Right For Me?
There are several forms of estate plans but the two most common are usually referred to as a “Trust Package” and a “Will Package.”
A Trust Package includes:
- a revocable living trust,
- a pour-over will,
- a durable power of attorney,
- a medical power of attorney,
- a mental health power of attorney, and
- a living will
This may sound like a lot of documents but the way they work together are the most cost effective in the long run and most secure for all of the needs you may face in your lifetime and upon death. The most immediate advantage of having a revocable living trust is that it allows you to avoid probate because the property transfers easily and according to the unique terms in your pour-over will and trust. An added advantage is that no one will know what your property consists of by avoiding probate because probated estates are a matter of public record. Furthermore, larger estates are able to minimize or even eliminate al estate taxes.
A Will Package includes:
- a will,
- a living will,
- a durable power of attorney, and
- a health care power of attorney
This is the traditional estate plan and adequate for most folks. The immediate benefit of a will is that is it cheaper than a trust. This estate plan usually requires probate but can be avoided with careful planning by incorporating payable on death accounts and beneficiary deeds.
One of the neat things about estate planning is you can protect whatever you want how you want. Being proactive is a must. I encourage you to speak with an estate planning attorney in order to put your unique plan into place.
Estate Planning Videos:
End-of-Life Planning Can Empower You to Dictate from the Grave – Right on the Money – Part 1 of 5
Do Nothing and the State Controls Everything – Right on the Money – Part 2 of 5
Many Life Events, But Only One Death Episode, Plan Accordingly – Right on the Money – Part 3 of 5
The Power of Control in Wills and Trust Documents – Right on the Money – Part 4 of 5
Everyone Dies, but Not Everyone Has a Living Will – Right on the Money – Part 5 of 5
The Myths About Handling Estate Assets – Steve Savant’s Money, the Name of the Game – Part 1of 5
Senior Financial Abuse – Steve Savant’s Money, the Name of the Game – Part 2 of 5
Choosing Your Advocate Wisely – Steve Savant’s Money, the Name of the Game – Part 3 of 5
Don’t Rely on Someone’s Opinion – Steve Savant’s Money, the Name of the Game – Part 4 of 5
Sole & Separate Property – Steve Savant’s Money, the Name of the Game – Part 5 of 5
