An estate plan is a collection of legal documents that help you manage your assets and affairs both during your lifetime and after your death.​ 

 

Your estate planning attorney will help you determine which documents are necessary to ensure your legacy is protected, your loved ones are cared for, your wishes are clearly expressed, and your plan works exactly as you intend.

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Here's a breakdown of key documents in an estate plan and their purposes:

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Living Trust

A living trust is a revocable trust that is set up during your life.  A living trust is a separate legal entity created to hold your assets.  You, as the Trustee of your living trust, maintain complete control of the trust (and your assets) during your life and you can add or remove assets as you wish. Upon your death, the assets in the trust are distributed by the successor trustee to your named beneficiaries. All assets in the trust will pass to your  beneficiaries without having to go through the probate process.

               

Do I Need a Living Trust?

If you have children and/or own real estate, you should probably have a living trust in your estate plan.  If you don't own real estate and/or have children, creating a living trust may not be cost-effective. However, having an estate plan that includes other key documents described below is still crucial to protect you and your loved ones in the event of your incapacity or death. 

               

Trust Summary

The Trust Summary is a condensed overview of the key provisions in your living trust. It provides quick-reference information about trustees, beneficiaries, property distribution, and other important details. Since most people may not have the time or interest to navigate the complex legal language of estate planning documents, a well-prepared summary is an essential tool for understanding your estate plan at a glance.

 

Trust Certification

A trust is a separate legal entity; therefore, banks and investment firms often require documentation to open, close, or transfer accounts. Using a Trust Certification instead of the full trust document helps you meet their requirements while maintaining your privacy.

 

Pour-Over Will

The purpose of a pour-over will is to ensure that any assets unintentionally left outside your living trust are transferred to, or are "poured over” into, your trust upon your death. While the primary objective is to place all appropriate assets into the trust during your lifetime to avoid probate entirely, the pour-over will acts as a safety net, capturing any remaining assets and directing them into the trust.

 

Schedule of Assets

A schedule of assets is a detailed inventory of everything owned, including property, financial assets, and personal belongings, both with and without financial value. It provides a clear and organized overview of the entire estate for accurate asset distribution and management. The last thing that your loved ones should have to worry about after you pass away is trying to figure out what you owned, where it is, and how to access it.

 

Assignment of Personal Property

You may own various personal items that don’t have formal titles, such as furniture, clothing, jewelry, art, and similar belongings. These assets can be transferred into your trust and protected through a document known as an Assignment of Personal Property.

 

Durable Power of Attorney for Financial Affairs

​A Durable Power of Attorney for Financial Affairs allows you to appoint a trusted individual to manage your financial matters and ensure ongoing support for your loved ones if you become incapacitated or unable to make decisions for yourself. 

 

Durable Power of Attorney for Medical Decisions

A Durable Power of Attorney for Medical Decisions, often called a Healthcare Power of Attorney, allows you to designate someone to make medical decisions on your behalf if you become incapacitated. 

 

Living Will/Advanced Healthcare Directive

An Advance Healthcare Directive (often referred to as a Living Will) is a legal document that allows you to specify your wishes regarding medical treatment in case you become incapacitated or unable to communicate your preferences due to illness, injury, or other medical conditions. It typically addresses situations where you’re unable to make decisions for yourself, such as being in a coma, terminally ill, or experiencing irreversible cognitive decline.

 

Nomination of Guardian for Minor Children

A Nomination of Guardian for Minor Children allows parents to specify who they want to be responsible for their children if both parents are unable to care for them due to incapacity, death, or other unforeseen circumstances.

 

Stand-Alone Will

A trust is needed in order to avoid probate and is usually recommended over a stand-alone will. A stand-alone will does not offer any protection from the probate process. A stand-alone will designates how assets are distributed, names an executor, and can also include a nomination of a guardian for minor children.

 

Pet Trust

A pet trust is a legal arrangement created to provide for the care and well-being of a pet after its owner’s incapacitation or death. It is a specialized trust designed to ensure that the pet is cared for according to the owner’s wishes, with the funds and instructions necessary to meet the pet’s needs.

 

Special Needs Trust

A Special Needs Trust is created to provide for the financial needs and well-being of a person with disabilities or special needs, without jeopardizing their eligibility for government benefits, such as Supplemental Security Income or Medicaid. 

 

Bypass Trust

A Bypass Trust, also known as a Credit Shelter Trust or AB Trust, is a type of irrevocable trust that is often used in estate planning to minimize estate taxes for married couples. It allows a portion of a deceased spouse’s estate to bypass the surviving spouse’s estate, thus not being subject to estate taxes upon the surviving spouse's death. The primary goal of a bypass trust is to take full advantage of the estate tax exemptions available to both spouses, reducing or eliminating the estate tax liability for their heirs.

 

Primary Residence Deed Transfer

A Primary Residence Deed Transfer is used to transfer ownership of your primary residence to your trust in order to ensure that at the time of your death, your home passes to your chosen beneficiary/beneficiaries without the need for probate, which can be time consuming and costly. Transferring property through your estate plan is also a key strategy for helping beneficiaries reduce or even eliminate capital gains taxes.

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At Life and Legacy Estate Planning, a deed transfer for your primary residence is included with our Full Trust Package. Transfers of additional real estate are available for an added fee, see the 'Our Prices' page for details.

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