Estate planning is the process of getting your affairs in order before the unthinkable happens. Most people assume the “unthinkable” is death, but this includes incapacity as well. Think about it: if you became mentally disabled, would you and your assets be protected?
Most estate plans consist of about four to five documents; the documents that you will need depend on your financial and personal situation.
Will or Trust?
Those that do not require a Living Trust can often use a Will as the foundation for their plan, but there will still be other documents to consider. In addition to your Will, you’ll also want:
- Healthcare Power of Attorney
- Financial Power of Attorney
- Living Will
If your situation is more complex you may need a trust based estate plan. If you need a trust there will be a minimum of five documents included in your estate plan.
- Living Will
- Financial Power of Attorney
- Advanced Medical Directive
- A Revocable Living Trust
- A Pour Over Will
All of these documents have a specific purpose and work together to create an estate plan that will protect your loved ones in the future.
- The Financial Power of Attorney – This document appoints someone that can legally manage your assets if you are unable to. This person can transfer assets to your Living Trust if you find yourself in a position to where you are unable to fund the trust yourself.
- Advanced Medical Directives – This is really a combination of two documents, the Living Will and the Healthcare Power of Attorney. These documents will ensure that someone can make medical decisions for you if you are unable to make them on your own as well as tell your healthcare providers what medical treatments you do or don’t want.
- Last Will & Testament – This document is used for distributing your property after you die. It is also a method of appointing a guardian for your minor children. If you have a trust, your Will can also cover any assets that were not funded to the trust.
- Living Trust – A Revocable Living Trust is a separate legal entity that holds title to your assets while you’re alive and then distributes them according to your wishes after you pass away. A trust has more flexibility than a Will – it can include inheritance incentives for example, and it also allows your heirs to avoid probate.
Mr. Nirenstein is licensed to practice before the courts of the State of Connecticut and the United States District Court. He is a member of the Connecticut and Hartford County Bar Associations, and the Estate and Probate, Elder Law, Business Law and Real Estate Sections of the Connecticut Bar Association.
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