What is Estate Planning?
Estate planning is the process that involves the disposition of property and other assets in the event of death. The term “estate planning” includes not only wills and trusts but also gifts, life insurance, annuities, and other financial instruments. An estate plan may also include powers of attorney for healthcare and financial matters.
The laws governing estate planning vary from state to state. While some states have very similar laws governing estate planning, others differ in significant ways. Therefore, it is generally advisable for someone seeking legal counsel for an estate plan to seek out a lawyer who specializes in such matters and is licensed to practice law in the appropriate state or multiple states.
While most people are careful to ensure that their property is distributed according to their wishes after their death through the use of a will, trust, or other legal instruments, many do not consider what will happen if they become incapacitated while still alive. Estate planning includes consideration of this possibility through the use of power of attorney for healthcare and financial matters as well as the durable power of attorney, healthcare directives, and living wills. In addition to making sure that one’s wishes are carried out at all times, estate planning can also reduce or eliminate taxes due at death and provide for family needs after death by creating trusts.
It is a complicated process that involves many different types of documents, each serving a specific purpose. A revocable trust is one such legal instrument designed to protect assets from taxation while providing for their distribution according to the testator’s wishes after death.
At Faithful Home Care Solutions – Aging Gracefully – End of Life Planning, we provide Estate
Planning services such as:
- Last Wills and Testament
- Healthcare Directive or Living Will
- Power of Attorney or Durable Power of Attorney
- Long-Term Care Riders & Insurance
- Final Expense Insurance
A comprehensive end-of-life plan enables individuals to make decisions about their health and financial wellbeing in the final stages of life when they are properly able to do so.
End-of-life planning consists of four components:
- Creating a living will or advance healthcare directive
- Designating an individual with a durable power of attorney for health care & finances
- Providing a document for the distribution of assets
- Choosing the type and place of care you prefer
This is designed to:
- Ensure the financial security of you and your family during and after your lifetime.
- Provide for your children’s education, health care, or other needs.
- Avoid probate, reduce estate taxes, and limit income taxes.
- Maintain privacy and ensure that your assets are distributed in accordance with your wishes.
- Avoid family conflicts & disagreements.
Don’t procrastinate when it comes to estate planning. Don’t think that you are too young or too young at heart to face up to the inevitable. It’s a difficult topic, but a necessary one as well. Don’t be afraid to seek counsel, help, or suggestions regarding your will, trust, living will, medical power of attorney, and funeral wishes. Preparation is key! Believe it or not, this doesn’t require a lot of money or extreme wealth. Estate Planning is for everyone!