The primary reason to create an estate plan is to ensure your family is properly cared for after your death. An estate plan also allows you to select a loved one to manage your estate should you become unable to do so yourself. An estate plan can also minimize or eliminate estate taxes.
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Why do I need an estate plan?
The primary reason to create an estate plan is to ensure your family is properly cared for after your death. An estate plan also allows you to select a loved one to manage your estate should you become unable to do so yourself due to health problems. If you have children, an estate plan is where you name a guardian for your children in the event of your death. If you don’t have an estate plan the court has the authority to divide your estate, appoint someone to manage your affairs, and select a guardian for your children. It is better to voice your wishes while you are alive, than have someone guessing after your death.
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What is probate and why avoid it?
Probate is a court process which validates a will and administers the assets under the will. This process is lengthy and often very costly, not to mention public. Your assets and who they are left to are a matter of public record, which can subject your family to unnecessary identity theft and potential crimes against family members who inherit those assets.
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What does an estate plan include?
A typical estate plan includes:
• A “Pour Over” Will;
• A Revocable Trust;
• A Durable Power of Attorney; and
• An Advance Health Care Directive.
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Why do I need an advance heath care directive?
A health care directive appoints a loved one to make medical decisions on your behalf in the event you are unable to do so. This directive also allows medical providers to share important medical information with that individual, ensuring you obtain the best possible treatment. This directive can be changed by you at any time.
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How do I protect my children?
A properly constructed will or trust package should name guardians for your minor children should there be no surviving parent. If no guardian is named the court will appoint someone, but the court’s selection may not be what you would have chosen. When selecting your guardian(s) it is important to discuss your wishes and make sure that the guardian(s) accepts the responsibility. You should also name at least one alternate. Accepting a guardianship is a decision that should not be taken lightly, and parents should consider leaving some of their property or other assets to the guardian to assure financial resources are available for proper care of their children.
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