What is Estate Planning? In its most basic form estate planning involves deciding how your property will be distributed and bills will be paid upon death. Proper estate planning allows you, instead of the court system through Probate, to decide now who will receive your property on death and who will make decisions for you regarding your finances and healthcare if you are unable to. Estate planning also includes naming a guardian for your children upon your demise and naming a guardian for yourself if you should ever need one. Common estate planning tools include Wills, trusts, powers of attorney for healthcare and finances, living wills, HIPAA Authorizations, final disposition instructions and probate avoidance methods.

What is a Will? A will is a document created during your lifetime that determines what happens to your assets that are still in your name at the time of death. A will also allows you to name a personal representative (to handle the distribution of your assets) and a guardian for your minor children, if needed.

What is a Revocable (Living) Trust? A trust is an estate planning vehicle that lays out the ground rules for your assets. While alive, the person creating a revocable trust retains control over all of his or her assets. After death, a trust directs the successor trustee in distributing the assets. A trust is beneficial as it avoids probate and keeps the process private.

What is a Power of Attorney for Finances (also known as Durable)? Everyone over the age of 18 should have a power of attorney for finances. A power of attorney for finances allows a person to pick an agent and a backup agent who will step into your shoes to make financial decisions on your behalf in the event you become incapacitated. Our financial power of attorney also allows you to name a guardian in case you would need one, which will help avoid a $2,000 to $4,000 price tag of the guardianship process.

What is a Power of Attorney for Healthcare? Like the power of attorney for finances, everyone over the age of 18 should have a power of attorney for healthcare. A power of attorney for healthcare is important because it allows someone that you choose to make healthcare decisions in case you are unable to.

What is a living will? A living will makes your wishes known via a written statement if you have a terminal condition and if you are ever in a persistent vegetative state. A living will, however, does not designate a healthcare agent to make other healthcare decisions.

What is a HIPAA Authorization? The Health Insurance Portability and Accountability Act of 1996 prohibits doctors and other healthcare professionals from discussing your health information with individuals unless they have been authorized by the person receiving medical treatment. A HIPAA Authorization is a legal document that allows healthcare professionals to share your health information to individuals of your choosing.

What is an Authorization for Final Disposition Instructions? This document allows you to designate another competent adult, a representative or an alternate representative, to make funeral arrangements on behalf of you, the declarant. The document also allows the declarant, or person making the Authorization, to give his or her chosen representative directions regarding the person’s preferences for final disposition and funeral services.

What are Probate avoidance methods? Probate avoidance methods allow you to avoid the court-ordered distribution of your estate, or Probate as it is commonly called, by naming, for example, a specific beneficiary or beneficiaries attached to an asset. Probate avoidance techniques are important aspects of any well-drafted estate plan.