Estate Planning

There are a variety of events in your life that may trigger the need for a new or updated estate plan – these may be a marriage, a divorce, a birth or a death. You spend a career working hard to earn money and generate equity in your company, working with a firm like Kanaly who can assist with the investment of assets you are accumulating, to then be sure they are used as you intended.

In the latter instance, it is a great help to your family and friends to have a proper plan already in order. Often, people avoid setting up their estate plan because they are unsure of what exactly they need to include. Here is a quick list of the most important things to include in your estate plan, and why it is so important to address them.

Will/updated will – If you die without a valid will, the court has no way of knowing how you wished to distribute your assets. It will distribute your assets based on the distribution schedule in the probate laws, which typically causes clashes, bitterness and after-death disputes between your children and other family members. With this is in mind, it is important to have a proper will in place and have it updated so you can be prepared for an unexpected event.

Ancillary documents – We all remember the Terri Schiavo case and its high-profile drama. After hearing about this every evening on the news, many people started to realize the importance of not only having a will, but also having a living will. In addition to a living will, there are several other documents that should be included in your estate plan.

• Directive to Physicians (Living Will) - Legally expresses what you want to occur if you are terminally ill or unable to speak for yourself. It also states who you would put in charge of making final decisions, if need be.
• Statutory Durable Power of Attorney – Should you become incapacitated, this allows someone to carry on your affairs and protect your property without formal judicial approvals.
• Medical Power of Attorney - Appoints someone as a representative to make decisions about medical treatment on your behalf if you become unable to make or communicate a responsible decision for yourself.
• HIPPA Power of Attorney - This document allows your agent to have access to your medical, dental and health records and supplements your medical power of attorney.

Beneficiary Designations/Guardians – As part of drafting a new or updated will, you need to designate beneficiaries to receive your assets. Take time to consider who you wish to receive certain assets. Also, make sure all of your insurance policies and retirement plans have the proper beneficiary designation and are updated when needed.

Trusts – Depending upon the size of your estate and your situation in life, it may be necessary to include certain trusts in your estate plan. These trusts may include a bypass trust, a marital deduction trust, a survivor’s trust and a revocable living trust. If you have children, ask your estate attorney about including separate lifetime trusts for each one.