Estate Planning

Not too long ago, I talked about naming a beneficiary. Naming a beneficiary on life insurance, annuities, 401ks, IRAs or any pre-tax account, will not only help your heirs avoid probate court, which is one thing we try to avoid at the time of your death, but also, the beneficiary will take the asset on in their name after your passing.

Have you had to deal with a relative, parent, sister, brother, or someone passing in your family that didn't have a proper estate plan set up?? Did it end up in probate court? If it did, under state laws, the probate court decides where your remaining assets will go.?

If you want your assets to go where you want your assets to go when you are no longer here on this earth, then you need to create an estate plan that directs what you want to happen with your assets at death and who should be in charge or organizing that transfer. When creating an estate plan, a Will is what the probate court will use to property divide your assets.? With a Trust, you may avoid probate entirely.? Not to mention, on life insurance, annuities, and qualified accounts as mentioned above, if you don't have beneficiaries named, those assets also could end up in Probate Court.

In your estate plan you could create a revocable living trust.? Some trusts are irrevocable during your lifetime in an effort to avoid Federal Estate Tax.? Most revocable trusts (trusts you can change during your lifetime), turn irrevocable at death (so no one can change it after your death).? If you create a Revocable Living Trust, that means you can change it whenever you want during your lifetime.? This trust will say what you want to have happen when you're no longer here on this earth. If you put the correct assets in your trust, it will totally avoid probate court. That is something that you want to put on your agenda if it has not been created..?

The third estate planning document that is very important is what's called a “Power of Attorney.”? There are general powers of attorney for incapacity and “Medical Powers of Attorney”, naming a “Patient Advocate” to speak for you when you cannot speak. The general power of attorney is to appoint someone for you to handle your financial affairs, write checks, pay bills etc.? The medical power of attorney is to have a person appointed called a patient advocate who will be the one to let medical professions know how to handle your medical care if you are unable to make those decisions for yourself.?

Naming a beneficiary is important, and it is a part of the overall estate planning which is even more important. Give me a call, let's talk about it and design the one that you want to have happen for you.