An estate plan is a set of legal documents which help ensure that you, your family, and your children, will be taken care of if you become incapacitated and when you pass away.
Everyone needs an estate plan. Proper estate planning ahead of time will eliminate a great deal of stress for you and your family in the future. Unfortunately, some people postpone creation of an estate plan until it is too late, and their family suffers as a result. The critical aspect of estate planning is to have the proper documents and plans in place before you and your family need them. Do you have an estate plan? Do your parents and other family members have one that is up to date? You should ask them.
A good estate plan includes, at a minimum, a Will, a Durable Power of Attorney, a Health Care Directive (also known as a 'Living Will'), a HIPAA Authorization, and sometimes a Trust.
Will
A Will is the basic estate planning document that everyone should have. Your Will controls what happens to your money, personal property, and home when you die. It is extremely important to have a Will if you have children because your Will appoints a guardian for your minor children.
To be valid, a Will must be prepared carefully and according to specific legal requirements. If you try to write your own Will without the help of an attorney, it can be declared void and invalid.
If you do not have a Will, your family can be torn apart by disagreements over who gets what, and your assets may be distributed in ways that you did not want. A valid Will helps ensure an orderly and peaceful transition for your family during their time of grieving.
Power of Attorney
A Power of Attorney gives someone else the authority to make legal, financial, and/or other decisions on your behalf. There are various types of powers of attorney that can be created, depending on your needs. They include:
Durable Power of Attorney - Gives another person power to make financial, legal, and medical
decisions on your behalf if you are incapacitated or otherwise unable to make the decisions
yourself. Without a Durable Power of Attorney, your spouse and family will be unable to fully
care for you or themselves during your incapacity.
General Power of Attorney - Gives another person power to make a wide range of decisions on
your behalf.
Special Power of Attorney - This document gives another person power to make only a specific
kind of decision on your behalf.
Health Care Directive (Living Will)
A Health Care Directive, also known as a Living Will, sets forth whether you wish to be kept alive by machines or other artificial means if a recovery is unlikely.
HIPAA Authorization
In a HIPAA Authorization, you give your healthcare providers permission to release your health care information to your family or other persons. Without this authorization, healthcare providers may refuse to release your information pursuant to Federal law.
Trust
A Trust is a legal entity that helps protect your assets from creditors and avoid taxes. This is accomplished by transferring legal title to your assets to the Trust. As a result, the Trust becomes the ‘owner’ of the assets. A Trust is generally beneficial for people who have substantial assets, own real estate in more than one state, or who have family members with special needs, or who want to retain some control over their assets after they die. A trust can also be created in order to support a charitable cause, or even to ensure that a pet is cared for.
Probate
Probate is a legal proceeding that deals with distribution of your assets after you die. If you have a Will, the Personal Representative you name in your Will is responsible for distributing your assets. If you do not have a Will, the court will appoint an Administrator to distribute your assets. There are various types of probate in Washington, depending on the size of an estate. Personal Representatives and Administrators of estates are required to comply with various probate laws, and should hire an attorney to assist and advise them as they proceed through the probate process. We assist clients with probate proceedings throughout Western Washington including in King County and Snohomish County courts.
Other
Other components of estate planning include retirement planning, investments, health insurance, life insurance, long term care insurance, Social Security, Medicare, reverse mortgages, and nursing home issues. We provide a wide range of assistance in all of these areas. For clients with California assets or interests, visit www.wealthandserenity.com for additional estate planning assistance.
Do you have a particular legal question or need? Give us a call at 206-617-5888. We want to help you understand your options, and achieve your goals, in an affordable, reliable, and efficient manner.