Founder
You do not need to a millionaire to have an estate. In fact, almost everyone who owns property has an estate, even if that property is not valued at a high sum of money. Having an estate really just means that you have assets – like a car, house, bank account, investments, life insurance, and more. An estate plan means that you know exactly what will happen to your estate (all of your assets) upon your death. An estate plan will provide you with peace of mind, and will be extremely helpful to reduce the burden placed upon your survivors.
The Importance of Estate Planning
An estate plan is a really important economic decision for you and your family, and can also be a decision that reduces controversy and stress when you die. A good estate plan will:
- Provide instructions as to how your estate is to be administered and distributed (i.e. who will get what);
- Name a guardian for any minor children you may have;
- Allow for your business or other property to be seamlessly transferred when you die;
- Allow you to set up an account for special need dependents; and
- Potentially mitigate or ease the probate process.
What’s more, a good estate plan may also alleviate your estate’s tax burden.
Important Estate Planning Tools
An estate plan usually consists of a variety of important legal documents, all of which must be formed following Massachusetts-specific laws. Some of the items most essential to a good estate plan may include the following:
- Las Will and Testament. A basic Last Will and Testament can address to whom you are leaving property, who the guardian of your minor children will be, who will manage property of your children (until they reach adulthood), and who will carry out the terms of your Last Will and Testament.
- Trusts and living trust. What is a Trust – it is a document making title ownership of property which will be held or used for the benefit of one or more others. A “Living Trust” is a trust that you create while you are still living, whereas a “Testamentary Trust” is created upon your death by virtue of you Last Will and Testament. One of the biggest benefits of a trust is that they typically avoid probate (allowing beneficiaries to claim assets held in a trust quicker). Further, you can specify exactly when and how you want items held in the trust to pass on to minors or special need beneficiaries.
- Power of attorneys. A power of attorney is a legal document that allows another person to speak and make decisions on your behalf in the event that you are unable to do so. For example, if you suffer a stroke and are unable to communicate, a power of attorney would allow a trusted loved one to make financial decisions.
- Health Care Proxies. A Health Care Proxy is a legal document with which a patient (primary individual) appoints an agent to legally make healthcare decisions on behalf of the patient, when he or she is incapable of making the decisions. Once the health care proxy is effective, the primary individual continues making healthcare decisions as long as he or she is legally competent to decide.
Westport Estate Planning Attorney Serving You
Making an estate plan is one of the most important things that you can do to protect both your assets and your family members. For legal assistance in formulating your estate plan today, contact the experienced Westport estate planning lawyer, Patricia Bloom-McDonald, Attorney at Law. Call for a complimentary, no obligation, case consultation today at 508-636-6097.