There are 8 basic estate planning documents that most adults would benefit from. We’re nutshelling them for you below. If you would feel more comfortable with more information, check out our other articles and feel free to telephone our office to schedule an estate planning consultation.

Revocable living trust

The center of most estate plans is the revocable living trust (RLT.) The RLT provides disability planning, pet planning, asset protection for beneficiary trusts, federal estate tax planning, legacy planning, family line protection, and probate avoidance (when fully funded.)

The pour-over-will/will

If you have a trust, you still need a will. You appoint an executor and guardians for minor children in you will. You also give instruction as to the distribution of your assets.

Power of attorney for finances

Your financial power of attorney authorizes your agent to act on your behalf in financial and day to day business matters.

Power of attorney for medical decisions

Your medical power of attorney authorizes your health care agent to act on your behalf to make health care decisions if you are not able to make those decisions.

Power of attorney for child care (i.e. stand by guardians)

Your power of attorney for child care names stand by guardians to care for your children and make decisions on their behalf if you are alive, but unable to care for them.

First responder authorization

This authorization indicates that trusted friends and neighbors, called “first responders,” can stay with your children in the event of an emergency until named guardians arrive.

Living will

The living will is an advanced medical directive wherein you make the medical decision not to be hooked up to machines if you are in an irreversible coma, persistent vegetative state, or otherwise terminal and at the very end of life.

HIPPA release

The HIPPA release is authorization for your medical professionals to consult with your named health care agents.

If you need any of these documents or have questions, consult with a qualified estate planning attorney.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.

You have probably heard that one way to avoid probate is by putting someone else’s name on your property and bank accounts. It is true that the property and accounts that have a joint owner can help you to keep that property from being subject to probate, but there are a few problems with this method.

Unless the joint ownership happens to be a spouse, putting someone’s name on your property or accounts can cause you a lot of trouble. When there is a joint ownership; this doesn’t mean that that person only owns 50% of the property, but all of it. Both owners are considered to own 100%.

It might seem like the perfect solution to put your children’s names on your accounts and house, but you should know that this could cause problems at some point in the future. If the joint owner gets into trouble with the IRS or other creditors, your property will be considered theirs, and could be taken in order to repay the joint owner’s debts.

Another problem with using joint ownership in order to avoid probate is the gift tax. If you just simply place someone’s name on the deed to your house, this will be looked at as a gift. Gift taxes can be very large, and although the house might not really be theirs yet, it will appear as if you have just gifted them the value of the home.

Another problem with inheriting property as joint owner instead of through a will or trust is that if you sell that property after you inherit, you will have to pay taxes on the profit that is made. When property is inherited through a will or a trust, it can be sold for fair market value and the person that inherited the property will likely not have to pay income taxes on the proceeds of the house.

There are much better ways to avoid probate than joint ownership. A trust is probably the best method of doing this because the property is still safe while the owner is alive, plus the taxes liability will be lower.

Co-Executor, PLLC is a member of the American Academy of Estate Planning Attorneys.