ESTATE PLANNING

Many people think the term “estate planning” refers to the management of affairs for those who are financially advantaged. But estate planning is simply a process of completing legal documents to ensure that your property – whether large or small – is directly distributed to the intended beneficiaries upon your demise. Estate planning is vitally important because it enables you to minimize applicable taxes for your heirs, eliminates disputes between beneficiaries and assures that your heirs will not be burdened with unnecessary financial conflicts after your death.

Although estate planning is different for every individual, there are three fundamental yet important documents needed: a. A will is a legally-binding statement directing the distribution of your property after your death. The will also appoints a legal representative (an executor or executrix) who will carry out your wishes. Depending upon individual circumstances, a will can also provide direction for guardianships for children or other dependents.

A durable power of attorney permits you to appoint an individual to act in your place in the event that you yourself become incapacitated. The power of attorney enables this person to make financial decisions on your behalf. Finally, a health care proxy appoints an agent and issues a medical directive that indicates your wishes should you become terminally ill or lapse into a vegetative state. The appointed agent makes medical decisions pertaining to life support.