Estate Planning Basics

The coronavirus health emergency is a reminder that life is unpredictable. Our office has fielded several recent calls inquiring about what “estate planning” entails. On a basic level, you should make sure you have these essential documents in place to protect yourself and your family.
Medical Directives. An Advance Health Care Directive designates someone you choose to make health care decisions for you if you are incapacitated and unable to do so yourself. It also provides detailed instructions to your appointed agent in how they should make medical decisions on your behalf (end of life decisions, organ donation, pain management, etc.). This document is designed to avoid a court conservatorship.
Durable Power of Attorney for Finances. This document designates someone you chose to act for you and manage your financial affairs in the event you are incapacitated and unable to do so yourself. This document is also designed to avoid a court conservatorship.
Last Will. A Last Will directs who should receive your assets upon your passing. Beyond naming beneficiaries, a Last Will is especially important if you have minor children because it allows you to name a guardian for the children. If the value of your probate estate is less than $166,250, a simple Last Will may be sufficient to avoid the headache of a court probate. If the value of your estate is in excess of $166,250, a Revocable Trust is often recommended to avoid probate.
Revocable Trust. A Revocable Trust is similar to a Last Will in that it sets forth how your assets will be distributed upon your passing. However, unlike a Will, a properly funded trust avoids probate and the lengthy time and expense associated with probate. Benefits of a trust: (1) A trust avoids probate and greatly simplifies the process of your beneficiaries receiving their inheritance; (2) If you desire, a trust also allows you to specify age requirements or other conditions a beneficiary must achieve before receiving their inheritance; (3) A trust can be easily updated and amended by you at any time during your lifetime; and (4) You continue to own and retain full control over trust assets during your lifetime.
Beneficiary Designations. At the same time you create your estate plan, you should make sure your life insurance & retirement plan beneficiary designations are up to date.
Due to the coronavirus pandemic, remote communications and signing methods should be employed in the creation of your estate planning documents.
For more information please contact the Law Office of Sean D. Ethington at 661-295-4604 or visit our website at www.ElderLawSite.com.