An estate plan is not complete without these 6 core documents. It's important to review your six essential estate planning documents every few years to make sure that they reflect your current needs and circumstances.
In light of the tax law changes that are anticipated, it is time to take inventory and determine how the Biden Tax Plan will impact your existing plan. Please read more ...
Six Key Components of a Great Estate Plan - Part 4
This is the fourth of a six-part series on building a comprehensive estate plan.
This plan is designed to protect you and your heirs for many generations to come ...
As our mantra states “Today’s Plans Become Tomorrow’s Legacy.”
Part 1 - Building a Road Map for Estate Planning and Financial Success
Part 2 - Team Building: Original building of estate planning team
Part 3 - Risk Management
Part 4 - Core Documents and Essential Components to a Comprehensive Plan
Part 5 - Customization of Trusts
Part 6 - Legacy Component
Enjoy the series and as always, we welcome your feedback. Our goal is to equip you with the insight and information you need to have confidence that you have designed and implemented a solid estate plan.
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Part 4 - Core Documents and Essential Components to a Comprehensive Plan
Review Your Existing Documents and Make Necessary Modifications
Evaluate who you have chosen to take charge of your health care decisions and who you have entrusted to handle your financial affairs when you are no longer able to do so.
This is a unique opportunity to take a second bite of the apple. Are the appointed parties truly competent to handle these very important responsibilities?
These decisions are especially crucial if you are at a vulnerable stage in your life. It is always advised to share your decisions with your trusted advisors and
family.
The six essential estate planning documents are as follows:
Health Care Advanced Directives:
1) HIPAA release – This document authorizes medical professionals to speak openly about your condition to your chosen decision-makers.
2) Health Care Surrogate Designation - If you are unable to make an informed consent to health care decisions, who do you trust to make these difficult decisions for you?
3) Living Will Declaration - If it is your time to pass peacefully, who will carry out your last wish regarding the dying process?
Financial Documents:
1) Durable Power of Attorney - Authorizes your fiduciary (trusted party) to make all kinds of tough financial decisions, including paying your bills and transacting most financial business (be aware of the Florida “Special Powers”);
2) Revocable Trust - Allows your fiduciary to manage your assets during your life and after your death as well as outline your specific instructions on who you want to receive your assets, how and when (Note: Our firm’s documents are drafted with special formulas to take into consideration adjustments in the tax law - the proposed changes are significant, therefore, a closer look at these provisions is essential if you will have a tax estate); and
3) Last Will and Testament - Simply appoints the Personal Representative who takes care of what has not been added to your Trust and deals with your last wishes regarding tangible personal property, taxes, last expense, and other administrative actions to wrap up your estate.
We continue to use phone conferences, Zoom, or other video communications to confirm that your plan is up-to-date and meets your current financial and personal circumstances. We are meeting in person to sign any new and update documents.
For more information about important estate planning documents, please read: Spring Cleaning for Your Estate Plan