SIMPLE ESTATE PLANNING CONSIDERATIONS FOR INDIVIDUALS
The Last Will and Testament, Powers of Attorney, and Living Will are three instruments that comprise a simple estate plan. These instruments provide specific instructions for the handling of a person's estate.
The Last Will and Testament is the instrument whereby an individual specifies the manner in which her or his property should be distributed to beneficiaries or heirs upon death. A Will also may contain provisions concerning the guardianship of minor children the payment of taxes, and other matters. A simple will may not be the proper instrument for every individual. For example, persons who wish to have another person manage their affairs while living may consider the use of a trust instead of, or in combination with a Will. The decision to make a Will is, of course, very personal, and should be done with care and with consultation with trusted legal counsel.
If you do not have a Will it may be presumed that you want your estate to go to your next of kin or blood relative(s). This form of distribution is referred to as intestate succession. Your next of kin usually includes your spouse, if you are married. Therefore, all of your possessions would go to your spouse if you died without a valid will. If you are not married, then your estate would go to your children. If you have no children, then your parents, followed by your brothers and sisters, aunts and uncles, cousins, would follow as beneficiaries. A simple Will can be used to avoid this form of inheritance by succession.
Similar to a Will, disability planning is an essential part of a complete estate plan.
A General Power of Attorney is used to allow an agent, also commonly referred to as an attorney-in-fact, to handle the financial, business, and other affairs of the principal or person who is the maker of the power. The general power of attorney is effective only upon the disability or incapacity of the maker. Like the durable power of attorney explained below, the general power of attorney is a substitute for a court-appointed guardian or conservator.
A Durable Power of Attorney is an instrument that gives authority to an agent when the maker of the power becomes incapacitated. The durable power of attorney is effective once signed and continues despite the disability or incapacity of the maker of the power. It is a substitute for a court-appointed guardian or conservator.
These powers of attorney may be signed at a different time or the same time that a Will and living will is prepared. A living will is an instrument signed by a person, also known as a declarant, that provides instructions concerning the medical decisions or procedures that should be followed if the declarant is unable to make decisions his or her own health care decisions.
Together, these instruments provide direction for a spouse or other person who may be required to handle the affairs of a loved one. The Law Office of Melvin O. Shaw, P.L.C. is available to assist clients with estate planning questions and may be reached at (319) 337-7429 or law@melvinshaw.com.
This newsletter is intended to provide general information only and is not intended to provide specific legal advice. Each person should obtain a detailed, specific analysis of their own personal needs.
