Wills, Trusts, Power of Attorney and Probate
Last Will and Testament:
A last will and testament is a vital part of an estate plan. If a person dies without a will, he/she is said to have died “intestate” and state law will determine how the assets will be distributed. Some things you should know about wills:
A will has no legal authority until after death.
A will does not help manage a person’s affairs if he/she becomes incapacitated.
A will does not help an estate avoid probate.
For parents of minor children, a will is a critical document, as it can be used to nominate the guardians for your minor children. All parents of minor children should document their choice of guardians. Without doing so, it is possible to leave your children in the care of the wrong guardians.
Trusts:
Trusts can serve a variety of legal, personal, investment or tax planning purposes. At the most basic level, a trust is a legal entity with at least three parties involved: the trust-maker (the grantor or settlor), trust manager (the trustee), and the trust beneficiary. In the case of a revocable living trust, a person may create a trust and name himself or herself as the current trustee to manage the trust assets, as well as be the beneficiary of such assets.
Power of Attorney:
A power of attorney is a legal document giving one person the legal right to do certain things on behalf of another person who grants those powers. A power of attorney may be very broad or may be very limited and specific. All powers of attorney terminate upon the death of the principle, and may terminate when the principal becomes incapacitated.
Health Care Documents:
A Health Care Power of Attorney is a document that specifies the type of medical and personal care a person desires if such person loses the ability to make and communicate his or her own decisions. Anyone over the age of 18 may execute a Health Care Power of Attorney, and this document is legally binding.
