- Frequently Asked Questions -

- ESTATE PLANNING -

Question

What does a Financial Power of Attorney do?

Answer

A Financial Power of Attorney appoints a person to make decisions about what happens to your property, assets, and insurance while you are living. It goes into effect as soon as you have it signed and notarized unless you specify otherwise. It terminates upon death.

Question

Why is a Financial Power of Attorney important?

Answer

Someone you trust (your agent) can arrange the payment of everyday expenses, rent, doctor’s bills, etc. They can collect government benefits, handle bank transactions, file and pay your taxes, buy and sell real estate, manage retirement accounts, and more. You are in control of what sorts of powers your agent has. This is useful if you are ever incapacitated. If you do not have your own Power of Attorney in place, then the court may appoint someone for you. This can be a complicated and time consuming process.

Question

What does a Advance Medical Directive/Living Will do?

Answer

An Advance Medical Directive/Living Will appoints a Healthcare Agent (someone who understands your values) who will act in your best interests and handle your health decisions if you are unable to communicate and outline your medical preferences which will guide doctors in deciding how best to treat you. You must sign it and have two witnesses (which cannot be the healthcare agent) and at least one witness must not be entitled to any of the estate or any financial benefits.

Question

Why is a Advance Medical Directive/Living Will important?

Answer

It helps the doctor to speak with one person and receive a decision instead of all of your family members trying to agree on what to do. You should provide a copy to your physician and Healthcare Agent.

Question

What does a will do?

Answer

A will essentially lays out your plan to distribute and dispose of the property you owned at the time of your death. It names someone to handle your estate. It names guardians of any minor children. It will authorize payment of funeral expenses. Your will only goes into effect upon your death.

Question

Why is a will important?

Answer

If you die without a will, then the state will decide how to distribute your assets. This may not accurately reflect your wishes and may lead to avoidable taxes for your heirs.

Question

What does a trust do?

Answer

A trust involves transferring property to a trustee. The trustee will hold and use the property for a designated beneficiary.

Question

What does “per stirpes” mean?

Answer

Per stirpes is a latin term used frequently in estate planning today for protecting against the death of one of your children by ensuring his or her share gets distributed to your grandchildren.

Question

Is there a certain income level I need to have before beginning estate planning?

Answer

No, there is no requirement as to income or assets.