!-->
Estate Plan Benefits
This page summarizes the most common estate planning documents,
and the benefits of each. If your your personal, financial,
or tax situation is complex, your own estate plan may also include
additional documents prepared for your by your HBK estate planning
attorney.
Will
A will is a legal document
that states how a person wants his or her property distributed after
his or her death. A will is only legally binding if it is signed by a
person with legal capacity and if it meets other legal requirements
of one's state of residence at death. The main benefit of having
a will is that you (rather than a state "intestacy law") get to choose the people who will inherit
your property.
Living Trust
A living trust (also sometimes called a revocable trust) is a legal arrangement in which a person,
called the “settlor,” transfers property to a trustee to administer
for the benefit of a person or persons (the “beneficiary”).
The settlor, initial trustee and beneficiary can be, and usually are, the same
person. For example, Jane Smith may transfer legal title
of her home from “Jane Smith” to “Jane Smith as Trustee
of the Jane Smith Revocable Trust." Property transferred to a
revocable living trust is generally still taxed for income and
estate tax purposes in the same way as it was when it was held
just in the settlor’s name.
A
"revocable living trust" can be revised or even revoked by the
settlor so long as he or she is living and is not disabled. A benefit of a
revocable living trust is that when the settlor passes away, the living
trust allows the property that was transferred to it prior to death to be distributed
to the people named in the trust without the necessity of court administered probate. A living
trust also provides a
way to manage the property of a settlor who becomes disabled.
An "irrevocable trust" cannot be revoked, and the power to amend it is
generally very limited. An irrevocable trust can be used to protect
assets from improper influence and may shelter the assets from claims
by spouses or creditors.
Durable Power of Attorney
for Health Care
This is also known as an "advance health care directive" or
a "statutory power of attorney for health care." In this legal document,
which generally follows a form set by state law, the creator
of the power of attorney names another person or succession of
persons (the "agent")
to make medical decisions on behalf of the creator should he or
she become disabled and unable to make his or her own decisions.
It can include a statement of the maker’s desires regarding sensitive
issues such as organ donation and the use of extraordinary medical
means to extend life. It should also contain specific language
authorizing medical providers to share otherwise confidential information
with the agents to use in making medical decisions.
Living Will
A living will is a
short document that states the maker’s intention that extraordinary
means not be used to prolong his or her life under certain circumstances.
Not all states recognize a living will. We include both a living
will and a durable power of attorney for health care in all estate
plans where the client expresses the intention that they not be
kept alive by artificial means under certain circumstances. This
is a highly personal decision left up to each individual client.
Durable Property
Power of Attorney
This is also known as a "statutory property power of attorney."
This legal document, generally following a form set by state law,
names another person or succession of persons (the "agent") to manage some
or all of the maker’s property should he or she become disabled
and unable to make his or her own financial decisions.
!-->