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Our Guide To Estate Planning
What Everyone Needs To Do

Here's a quick checklist that you should review to assist in your estate planning. By taking a little time now to see what shape everything is in, you will save time, money and anguish in the future.

Standard Will: At the very least, make certain that your will is current. Make sure that the executor, beneficiaries, guardians, assets named, etc. are correct. Too many people have old wills or no wills at all. Get it done!

Living Will: This is a directive on the type of health care you want when you are no longer capable of making decisions (i.e. deathtime transactions). You can decide now if the medical community should go to extraordinary means in order to keep you alive, even if your quality of life is diminished. You might as well make a decision now while you can understand the ramifications.

Health Care Power of Attorney: With this document, you delegate to your designated agents the power to make medical decisions, both lifetime and deathtime, as specified in the document. Depending on how your Health Care Power of Attorney is drafted, it can also serve the purpose of the Living Will. Some people prefer to have both documents. It is our opinion that the Health Care Power of Attorney, however, can cover the deathtime transactions promulgated by the Living Will, plus all of the designated lifetime transactions.

General Power of Attorney: With this document you appoint an agent to assist you in carrying out various property-related transactions, such as writing checks, making bank deposits, collecting amounts due to you, making insurance claims and, in general, doing all that you would do to take care of your personal business affairs. It is useful in situations where you are unable to perform a particular act and, for convenience, you choose another person to act in your stead. The power given to this person can be specifically stated and you should always retain the authority to withdraw or revoke the Power of Attorney. Give the General Power of Attorney wisely, i.e., to someone you trust. If you have a Durable General Power of Attorney, it will remain in effect even if you become incapacitated.

Funeral Declaration: We strongly suggest that you prepare a declaration with respect to your funeral arrangements. This is an important document and should not just be put in the will. The will does not have to be "read" until after the funeral. It is much better to express your wishes in a separate document and have it notarized.

Advisor List: It is often helpful to prepare lists for the survivors which may identify, among other items, your attorney, accountant, life insurance agent, banker, and financial advisor/broker.

Document List: A list should be made telling the executor of your will (or your beneficiaries) where important documents are kept, where all of your investments are, and finally, if you have a safe deposit box and the location of the key.

The following estate planning tool, although not required, may have some benefit for you depending on your situation and philosophy:

Revocable Living Trust: A Living Trust contains detailed information and restrictions on the management of your assets. It provides an organized method to manage your assets during your lifetime as well as after death. It is unique in that it: 1) relieves the burden of money management; 2) reduces estate settlement expenses and delays by avoiding probate at the time of death; and 3) safeguards assets in the event of disability. It is called a “Living Trust” because all of these benefits take effect immediately. The trust is written to meet your needs and accomplish your goals. Since the trust is revocable, you can modify its terms, change beneficiaries, withdraw or add assets, or terminate the trust, depending upon your changing needs.

In the written trust agreement, a Trustee is appointed to manage certain assets for your benefit. You can appoint yourself, another person, or a professional trust company to serve as Trustee. During times of a health crisis, the Trustee can be given the authority to make investment decisions, collect or deposit income from investment, savings or checking accounts, and keep accurate records to simplify the preparation of your personal income tax returns. In the event of a disabling illness, the trust can act as a receptacle to receive, administer, safeguard and distribute assets for your benefit. When you recover or regain the ability to manage your affairs, the process of revoking the Trustee’s authority is simple and straightforward. Furthermore, at the time of death the Trustee will work in coordination with the Executor appointed in your will to administer an estate plan that is responsive to your intentions and your family’s needs. Like a Will, the Living Trust can contain provisions to reduce estate taxes.

The flexibility which the Living Trust offers and its ability to provide protection for your property and assets makes it an effective document for preparing a sound plan to maintain your financial independence.

The appropriateness of any of the legal methods discussed above depends upon your needs and circumstances and those of your family. An attorney can advise you on how to best answer your needs, but only you can determine your needs and objectives. By taking time to identify your future needs and to plan for the unfortunate possibility of temporary or long-term incapacity, you can effectively maintain control over your life-style and money, lessen the potential for family complications and stress, lower the cost of administration by avoiding probate and lessen the potential for guardianship proceedings.

Proper planning, if done correctly, can make the process of taking care of the estate relatively easy. If it is not done, then the courts will do it for you! The results will certainly be different than the way you wanted, and the costs and time will be much greater.

 

 Securities and investment advisory services offered through FSC Securities Corporation, member NASD,  SIPC and a registered investment advisor.  Additional investment advisory services offered through Future Finances, Inc., a registered investment adviser not affiliated with FSC Securities Corporation and is not a broker-dealer.

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