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| Cathy R. Robinson, CPA Senior Manager robinson@hwco.com |
In Part 1 of Tips, Tricks and Essentials of Estate Planning the four
essential documents the CPAs and advisors at HW&Co. most recommend were
covered. To recap the list, the essentials were having a will, having durable
power of attorney, medical power of attorney, and finally, a directive to
physicians or a living will.
So what else can you do to better prepare yourself for
planning your estate? There are additional
highly recommended items you should look into. They are:
A Trust
You should create a trust while you are alive. Finding a reliable,
trustworthy trustee is the second step. This person will manage the property
according to legal duties and your instructions. They distribute the assets to
the beneficiaries according to your instructions. So why invest in a trust? The first reason is
so that it can help you to provide for and protect a beneficiary. Secondly, the
flexibility of asset distribution can help to spread benefits over time. Your
instructions will govern who receives the assets of the trust and the amount
they receive, while also setting standards and conditions. Finally, a trust can
help to protect against your own incompetence. Should something happen with
your mental state the trust will already be in place with clear concise orders
to help take care of your loved ones.
It’s important to also be aware that while trusts can be
very helpful, they are not always worth the cost, expense and hassle that come
with them. You should also look out for the trust “seminars” sponsored by
companies claiming to prepare trusts. These people are often not licensed
attorneys. Avoid the scam and seek out a professional.
Self-Designation
of Guardian
With this document, you can name the person whom you
would want appointed to be in charge of your minor child(ren.) A guardian is
the person who will be legally responsible for the personal affairs, health,
and well-being of a minor. In some states, you can also disqualify people you
do not want appointed.
Organ Donation
If you are someone who would like to donate your organs,
you should have clear documentation and instructions. This can be as easy as
going to the DMV to have it placed on your driver’s license. If you do not make
this decision for yourself, your family will reserve the right to make the
decision for you.
There never seems to be an ideal time to plan your
estate, but it is important to have a plan. These useful documents can help to
make things easier on your loved ones, while ensuring your wishes are being
carried out accordingly. It is also recommended to seek professional advice as
to meet your goals.
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