What is an estate plan?
An estate plan is more than just a Will, while having a Will is an important component of an Estate Plan there is a lot more that you should have to complete your plan. Below are the documents we recommend everyone have as a bare minimum to have an effective estate plan for their family.
Last Will & Testament – this document directs who gets your assets and how they get your assets after your passing. You will need to nominate an Executor which is the person responsible for administering your estate and ensuring that your assets are transferred properly to your beneficiaries. A Will is especially important if you have minor children because it allows you to name a guardian and a trustee to manage assets for them until they are older. If you have a blended family estate planning can become complicated and having a Will makes sure that your wishes are carried out and your family is protected.
Financial Durable Power of Attorney – this document allows your designated agent to step into your shoes and make legal and financial decisions on your behalf in the event you are unable to make those decisions for yourself.
Advance Directive for Healthcare – In Georgia we use an Advance Directive for Healthcare to appoint an agent to be able to make medical decisions for you in the event you are unable to make those decisions for yourself. This document includes a HIPPA release and language to list your preference for your care in the event you are in an end stage, terminal condition, or in a persistent vegetative state.
In the state of Georgia, if you do not create a Will, the state will create one for you. There are intestate laws that dictate who will inherit from your estate in the event you pass away without a Will. If you do not have a financial power of attorney and/or healthcare directive in place, the court may appoint someone to act for you, and that person may not be one you would have chosen for yourself. The Court process also causes significant delays in managing assets and costs much more than the cost of setting up an estate plan.
What is a Trust?
A Trust is a legal document that allows you to manage your assets during your lifetime and after your passing. Trusts allow for the creator of the trust (the trust grantor) to make a detailed plan for how they want their assets to be managed. There are several types of Trusts, but the most common types of trusts are revocable, irrevocable and special needs trusts.
It is a common misconception that Trusts are just for the extremely wealthy. Trusts can provide many benefits to individuals and families from all economic backgrounds. The main benefit for families is that Trusts avoid the probate court process. By avoiding probate, you allow for a faster and smoother transition of assets to your beneficiaries. This also allows for additional privacy and protection of your personal financial matters. Revocable trusts can also allow for families to make specific detailed plans for their children and surviving spouses. If you have minor children having a revocable trust set up is the best way to ensure they will be well taken care of right away.
Certain irrevocable trusts can be used for advanced tax planning by eliminating or minimizing estate and gift taxes. Irrevocable trusts can also protect your assets from other creditors through an asset protection.
Many families also can benefit from special needs planning to ensure loved ones that may require additional care in their lifetime receive the benefit of an inheritance while still maintaining any need-based government benefits they rely on. When planning for a disabled loved one there are specific trusts that need to be used to ensure they are fully protected and maximize all the programs available to them for care.
It is important to consult with a qualified estate planning attorney to properly assess your needs to determine which Trust will be most beneficial for your unique situation. Our estate planning attorneys can assist with all of your estate planning needs. Call us today at 770-285-8229 for a free estate planning session with one of our qualified estate planning attorneys.