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 Trust
and Estate Planning in Florida
Most People Think that Estate Planning is Only for the Wealthy
Nothing Could be Farther from the Truth.
You have worked hard to build what you have and now you need to
protect it. Having an estate plan is essential to safeguard your
loved ones and assets. A complete estate plan covers two fundamental
areas. First, after death, it establishes the manner in which your
property will be distributed, it names guardians for young children,
and it designates the handling of your remains. Second, it nominates
and gives direction to an agent to make financial and/or medical
decisions on your behalf should you become incapacitated.
Often times, people put off finalizing an estate plan, primarily
because they believe it can be done at a later time. However, there
is no benefit gained by a delay, and too often, it never gets done,
resulting in very expensive and time-consuming legal issues for your
loved ones.
Last Will & Testament -This is a document where you direct
the manner which your property will be distributed upon your death,
it names guardians for young children, and it designates the
handling of your remains.
Power of Attorney - This is a document where you name a
person to make financial decisions on your behalf such as writing
checks and filing tax returns.
The Living Will is a document that allows you to direct
the type of medical treatment you would like to receive if you are
unable to direct your own care. Most commonly, this is where a
person will direct that life sustaining treatment be withheld if
there is no chance of recovery. A Designation of Health Care
Surrogate (HCS) is a document where you name a person, called an
agent, to make medical decisions for you.
A Revocable Trust is a document most commonly used as a
method to avoid probate. With all trust packages you will also
receive a Will, Certificate of Trust, Assignment of Trust and a deed
transferring your home into the Trust at no additional charge.
In a Last Will and Testament, you name who will be responsible for
handling your assets upon your death and you direct to whom your
property will be distributed. Through a Will you can also name a
guardian for any young children. In addition, a Will is the best
place for you to direct how you want your remains handled, whether
you want your body buried, cremated, or handled in any other manner.
You also want to make sure your Will is up to date. The death of
Anna Nicole Smith is a glaring example of how important it is to
have a current will outlining your wishes on how you want your
remains handled, and who you want to have custody of your children.
Sometimes having only a Will is sufficient. However, a Will still
must go through probate. The probate process can cost 3 to 6 percent
of your entire probate estate and can take up to 2 years in probate
court!!! Certainly, having a Will is better than having no plan at
all; however, generally a Will is simply not enough. With a
Revocable Trust, you can avoid probate, and upon your death the
Trustee of your Trust can act on your behalf by simply producing the
original trust and a death certificate, making court intervention
unnecessary. Assets in a Revocable Trust are not the only assets
which will avoid probate. Accounts where you name a beneficiary, or
property that is held in joint tenancy or tenancy by the entirety,
will all avoid probate. For this reason, it is important that no
assets are left in your name alone, otherwise, all such assets will
be subject to probate.
Another important step in your estate planning is the Advanced
Directive. The Advanced Directive explains your wishes about medical
treatment if you become incapacitated or unable to communicate. Two
important examples are the Living Will and the Designation of Health
Care Surrogate. The Living Will bears no relation to the
conventional Will used to leave property at death. The Living Will
is a document that allows you to direct the type of medical
treatment you would like to receive if you are unable to direct your
own care. Most commonly, this is where a person will direct that
life sustaining treatment be withheld if there is little chance of
recovery. A Designation of Health Care Surrogate (HCS) is a document
where you name a person, called an agent, to make medical decisions
for you. People question whether a HCS is necessary because they
believe close family members can often times make these decisions if
necessary. However, disputes often arise which can lead to
additional suffering and medical expenses. A recent horrific example
of this is, of course, the Terri Schiavo case.
Another important tool in an estate plan is the Financial Durable
Power of Attorney (DPOA). A DPOA allows you to name someone that you
trust to handle your finances should you become incapacitated. This
document allows your agent to perform necessary duties such as pay
bills, manage retirement accounts and file and pay taxes. If you do
not have a DPOA, and you become incapacitated, a guardian must be
appointed by the court to handle your finances. This can be a very
expensive and time-consuming process and most people would certainly
rather designate who will handle their finances.
It is important to remember that all of the documents referenced
above are not written in stone and can be changed or updated at any
time. Do not put off taking this very necessary step to protect your
loved ones and your hard earned estate.
If you need assistance with your Estate Planning,
contact the Law Office of Conrad Willkomm
today!
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