FAQ:

What are the common tools of estate planning?

Intestacy. Intestacy means dying without a will or a trust. Intestacy is actually an involuntary method of estate planning because dying without a will or a trust means that you have given the state the right to decide who is to receive your property.

Last Will and Testament. A last will and testament is your direction to the probate court explaining who you want to take authority over your property and how you want your property to be distributed at death. It is also the document used to name a guardian for minor children.
Joint Tenancy with Rights of Survivorship. One of the ways to own property is as joint tenants with rights of survivorship. Bank accounts or real estate may be co-owned and co-controlled by joint tenants while you are alive and well. Your property, if titled this way, passes without probate to the surviving joint tenant at your death.

Beneficiary Designation. Life insurance benefits, annuities, individual retirement accounts, qualified retirement plans and pension plans pass to named beneficiaries at your death. Beneficiary designations override any instructions you may give for disposing of these assets in your will or living trust. Generally, these assets do not pass through probate.

Power of Attorney. A power of attorney is often used as a “disability” planning tool. Authority to control, manage, and distribute property while you are living is given in a power of attorney to another person, or “agent.” A “durable” power of attorney is in effect while you are well and remains effective even if you become incapacitated. A power of attorney is no longer valid at your death and the agent loses authority to act on your behalf when you pass away.

Gifts. Giving assets away prior to death can be a valuable part of an estate plan if it is accomplished with appropriate professional advice.

Living Trusts. You can use a living trust to manage your property while you are alive and well, provide directions to others if you become mentally disabled, and distribute your entire estate according to a comprehensive plan without the need for probate.

What are some of the other advanced estate planning tools and techniques?

There are many different tools, strategies, techniques and special trusts that might be part of a sophisticated estate plan. These specialized tools require a well trained and experienced attorney to assure that they are properly designed and implemented. Examples of these tools are found on our advanced planning circle.

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