Personal financial planning should include properly drafted wills and/or trusts to provide for death, illness and incapacity, and to establish the distribution format for one’s assets, to minimize estate taxes and dispose of one’s assets as desired, instead of in accordance with the laws of intestacy as designated by the State.  Dying without a will can create additional financial burdens for family members, including undesired distribution of assets, reduction of assets that may pass to a spouse, the designation of guardians for your children other than those desired, additional bonding costs and other expenses incidental to probate that can tie up an estate for months or years.

     To avoid such adverse consequences, maintain the following documents in good order: 

Power of Attorney.  A Durable Power of Attorney will allow a designated individual to act on one’s behalf during any periods in which one is unable to act for oneself.  Upon the occurrence of a prolonged illness or short term inability to act, this Power of Attorney can be utilized to maintain business and personal commitments in proper order. 

The Living Will.  A Living Will provides a statement to doctors and family members that, in the event of incurable disease, unnecessary life sustaining procedures will not be implemented to prolong the eventuality of death.

Last Will and Testament.  In order to personally control the distribution of assets, a Will must be prepared to designate an executor; a person or corporation qualified to act on one’s behalf after death and to administrate the final matters relative to business and personal affairs.  A Will also assures for the appointment of guardians for the benefit of minor children and provides appropriate care and maintenance of assets on behalf of such children.

Grantor Trust.  A Grantor Trust or Living Trust is a vehicle that can simplify the transfer of assets without the delay or expense of probate.  The Trust maker or (Grantor) retains the right to amend, revoke or terminate the Trust.  All assets that would normally pass through the estate are transferred to the Trust during the Grantor’s lifetime to avoid the process of proving ownership of those assets after the Grantor’s death, and to enable the Successor Trustee to immediately undertake asset management.  During the Grantor’s lifetime, all income is taxed directly to the Grantor, but upon the Grantor’s death, the Trust generally provides for additional Trusts with specific beneficiaries designated by the Grantor.  This Trust may also provide numerous tax advantages to family members or beneficiaries after one’s death.