Frequently Asked Questions Regarding Estate Planning

What is a power of attorney?

A power of attorney is a document that authorizes another person, called your agent, to act on your behalf. A power of attorney allows the agent to act, even if you become incompetent. Your agent should be someone you trust completely to handle your finances honestly and according to your wishes.

What can your agent do?

According to your provisions, your agent may be able to sign legal documents in your place, buy and sell real estate for you, pay your bills, and take other financial actions on your behalf.

What about health care decisions?

A separate power of attorney for healthcare can be written giving your agent the authority to make health care decisions for you, if and when you are unable to make them.

Is a power of attorney for health care different from a living will?

A living will tells physicians your wishes regarding life-sustaining procedures if you have a terminal illness, an end-stage disease or if you are in a persistent vegetative state. You may direct that life-sustaining procedures be withheld or withdrawn, or you may direct that they be used to sustain your life. A designated health care agent makes most decisions related to your health care. If you specifically grant the power, your agent can decide to withhold or withdraw life support, admit you to a nursing home and make other health care decisions.

What if I become incapacitated and have not executed powers of attorney?

If you have not appointed an agent or signed a power of attorney and you are no longer able to manage your property or care for yourself, any family member, agency, health care provider or interested person may petition the court to appoint a guardian to act on your behalf. The guardian will be responsible for managing your financial assets and also may be responsible for decisions related to your care.

What is probate?

Probate is a legal process that takes place after a person dies. An attorney or representative of the estate will document that the person's will is valid, help determine and value the person's property, pay debts and taxes and distribute the remaining property. This process can take a few months to more than a year depending on the complexity of the estate.

Must all of a deceased person's property go through probate?

A certain amount of property can pass free of probate, or through a simplified probate procedure. Property in a trust or that passes outside of your will is not subject to probate.

What is estate planning?

Estate planning helps ensure that your assets will pass to the beneficiaries you designate, limit estate taxes and, when possible, avoid probate.

What is in an estate plan?

A proper estate plan may include a will or trust, a directive to your physician or a durable power of attorney, as well as any final instructions.

How often should I review my estate plan?

An estate plan should be updated whenever your desires or situation change. Our firm recommends reviewing your estate plan at least every two or three years. Life changes that might warrant immediate review include birth, death, marriage, divorce or disability of you or a beneficiary, a substantial change in your net worth or that of your beneficiary, purchase or sale of a business or moving your residence to a different state.

How much will an estate plan cost?

Many variables will determine the cost. We recommend clients complete a questionnaire detailing their objectives. We then provide a cost assessment based on achieving those objectives.

What are trusts?

A trust is a relationship in which a person, called a trustor, transfers property or an asset to another person, called a trustee. The trustee then manages and controls this asset for the benefit of a third person, called a beneficiary. Trusts offer a number of important benefits, including:

• Probate Avoidance
• Death tax avoidance or reduction
• Capital Gains Tax Savings
• Avoidance of conservatorship
• Management of assets during life and after death
• Creditor protection for your beneficiaries