basic estate planning checklist

so last night was the workshop, and in case you missed it, here is an overview (albeit a pretty shallow one) of what we talked about.

the 4 very most basic estate planning documents that every adult should have on file and accessible - like i said before, it's the responsible thing to do - these documents include:

(1) durable power of attorney: this names a person who is authorized to make financial decisions for you in the event that you are unable to. as long as you are mentally competent, you are free to revoke, change or create a new power of attorney at any time.

(2) durable medical power of attorney: same idea. this names a person who is authorized to make medical decisions for you in the event that you are unable to. make sure you choose someone you trust who understands your wishes and values.

(3) advance directive (also known as living will, physician's directive): this is a document that allows you to specify what medical care you do and do not want, generally for "end of life" care. this allows you to take control of your own medical care and as long as you are mentally competent, your instructions will control.

(4) last will and testament (also known as a will): instructs the distribution of your estate when you die. and more importantly, you can name a guardian for any minor children you have. allows you to make decisions about your property and your family for after you die. if you don't have a will, then the state law kicks in and directs where your stuff and even your kids go. for more reasons on why you need a will, see this post.

how do i get my hands on these?

Q: so i wasn't able to make it to the workshop last night, so how would i come across these oh-so-important documents that every adult should have?

A: good question. if you missed the activity last night and would still like the info, please email me or comment here and if there is enough interest, we can do a repeat of the workshop. (i am hesitant to post the forms here. as an attorney, it's probably not the most responsible thing in the world for me to just send them out willy nilly without any accompanying instructions).

or... for help in getting started, you can hit up these websites and get a little more information.


www.nolo.com

www.legalzoom.com

www.buildawill.com


and finally, hear this and hear me well: to get a thorough, comprehensive and complete will, please please please consult an attorney. there is a price range, and attorneys generally charge by the hour, so call around and get a few quotes. if you get sticker shock from the first one you call, don't be discouraged, call another. for a directory to find an attorney in your area, click here.

basic estate planning: a glossary

for a little help, below is a list of commonly used terms that you may come across when getting your act together:

- agent – a person who is authorized to act for another (the principal)

- beneficiary – the one who receives assets/property from a will, trust, estate

- community property – property and income that belongs jointly to a married couple

- estate – all that you own in property or assets

- executor- the person appointed to administer the estate of one who dies with a will

- guardian – a person appointed by the ct to take care of a child or incapacitated adult

- intestate – you die without a will

- personal representative – a generic term for an agent, an executor

- principal – the chief actor

- probate – the process of administering your will

- separate property – property that is owned separately by one spouse acquired through gift,
inheritance or property owned before the marriage

- testator- the one writing the will

- trust – something held by one party for the benefit of another- will – a written document directing the distribution of your estate

who needs a will? you do, that's who.

Q: but i don't really even have any property or assets of value? do i still need a will?

A: yes! nearly every adult has reason to have a will. regardless of your age or net worth, you should have a will. it's simply the responsible thing to do. you will especially need a will if you have any minor (under age 18) children.

Q: but why do i need a will?

A: if you don't have a will, then it means that you are intestate*. this means that your estate will be distributed according to the intestacy laws of your state.

if you don't have a will, when you die, the state steps in and decides who gets your stuff and even who gets your kids. i guess it's possible that the state could get all this exactly right and exactly how you would have decided to divide up your hard-earned money (or the small fortune you inherited from your late husband, or your special collection of antiques that you were saving for your niece, or the pearl engagement ring that's been in your family for 6 generations) - but it's not likely.

and it's possible that the court system will consider all of the same values and factors that are important to you in raising your kids -- is your sister capable of raising your 3 kids? can your estranged mother give your kids the same upbringing that your 2nd cousin who lives two doors down from you give them? will your brother's new wife love your kids the way you do? will your mother-in-law take your kids to church if she became their guardian? there are so so many considerations that you have to think about for your own kids - and as the parent, you are the one that should be making these decisions. it's what's best for your kids.

and one more reason - going to court to figure out what to do with your stuff, your debts, your kids and the rest of your unfinished business is costly and time-consuming. do you really want to leave your family and loved ones to do what you could and should have done yourself?

*intestate: One who, having lawful power to make a will, has made none, or one which is defective in form. In that case, he is said to die intestate, and his estate descends to his heir at law

Q: where do i get a will? is it going to cost me a small fortune to hire a lawyer to draft it?

A: nope. you can do it yourself!

so what now? come to the basic estate planning workshop on thursday, april 16th at 7 pm in the relief society room and we'll go over it all in detail.