What is Estate Planning?

Estate planning is the creation of documents that provide instructions about how to manage your assets if you are incapacitated or upon your death. 

These documents may include the following:

Wills: A will is admitted to probate and is only valid upon your death. You nominate someone in your will to serve as your personal representative (executor). Upon appointment by the court, your personal representative will collect your assets and distribute them according to the directions in your will. Sometimes a will simply directs all assets be distributed to a revocable trust that you created during your lifetime.

Trusts:  When properly funded, trusts avoid probate. You designate a successor trustee in the trust document. The successor trustee has authority under the trust agreement (and does not require court appointment).  The successor trustee will administer and distribute your assets according to the directions in your trust agreement. A successor trustee may start acting upon your death or some other triggering event, such as incapacity.

General Power of Attorney: This document is effective during your lifetime and becomes void upon your death. In this document, you designate an Agent to manage your financial affairs if you are unable to do so. Typically, the document becomes effective upon the occurrence of some triggering event such as incapacity.

Medical Directives consist of different parts or different documents:

(i)             The health care power of attorney permits you to designate an Agent to make health care decisions for you if you are unable to make them or communicate them to your doctor.

(ii)            The living will considers the possibility of your being in a persistent vegetative state or being unconscious and suffering from a terminal and irreversible condition. It allows you to provide instructions now to be carried out when you are unable to provide such instructions.

(iii)          The HIPAA Authorization and Release authorizes individuals (usually your designated Agents) to speak to your medical provider about your condition.

Designation of Guardian by Separate Writing. In addition to designating someone to serve as guardian for your child in your will, you can also designate a guardian by separate writing, which separate writing would be effective upon incapacity or some other event besides death that renders you unable to provide parental care.

Delegation of Parental Powers. Permits you to give someone, usually other than the designated guardian, the authority to care for your child and gives that person HIPAA authorization so that he or she can arrange for medical care for your minor child.  Typically given to someone like a grandparent or a sitter who is caring for your child and would need temporary authority in an emergency.

Certificate of Trust. Summarizes the terms of your revocable trust and the persons acting with authority that can be provided to financial institutions in lieu of your trust agreement, which is a confidential document.

Bill of Sale. Transfers personal property to your revocable trust.

Deed. A legal document that transfers title to real property. Sometimes used to transfer real property to your revocable trust. 

Statement of Authority. Identifies the trustee or trustees who has (have) authority to convey, manage, and encumber real property and is usually filed with the Clerk and Recorder when a trustee is selling real property from a trust.

Memorandum Distributing Tangible Personal Property. Can be used to give personal effects to someone other than the beneficiaries of your will or trust.

Instructions for the Disposition of my Body and my Funeral or Memorial Service.  Allows you to leave your loved ones with instructions about your wishes and who you want to make such arrangements.