These documents could save you and your family time and expense if you are unfortuantely incapacitated or accidently killed.

Everyone is familiar with the Last Will and Testament, it tells the courts how you want your property whether personal or real to be distributed in the event of your death. Most people who are young feel they do not have enough to be distributed. However, what they do not realize is that their estate may have claims against an indiviudal responsible for their death, which could produce a cash windfall for the estate. If there is nothing set up Courts have strict guidelines they must follow to reolve your estate.

The Living Will is a document that states how your body will be taken care of if you reach a medical stage in which there is no hope for recovery. If you wish to be given just medication to be comfortable until you pass, but do not want feeding tubes, endotracheal tubes or other heroic life sustaining methods you must state so. The advances in medical treatment means you are more likely to be in accident and incapacitated then killed now-a-days. Make the decision while you are able too, on how you want your care given.

Health Care Power of Attorney, allows you to decide who will make decisions on your care when you are unable too. If you are incapacitated but have not reached an end medical stage, the hospital may require your loved one to file for a guardianship so they can make decisions on your care. To obtain a guardianship is an expensive legal procedure that takes time. Most people do not realize that if you are over eighteen, that your parents do not automatically have that right to make decisions on your behalf. By obtaining this document you let everyone know who can make decisions and what those decisions should be.

Durable General Power of Attorney is used to handle financial obligations on your behalf. Today most credit card companies, banks, or other businesses will not talk to anyone not authorized by the person who set up the account. If you are incapacitated you can no longer give permission to your bank or Credit card company to speak with someone other than yourself. This Durable power of Attorney will give that authorization to help protect your interests when you can not make decisions. This is my opinion only but because the power of attorneys are powerful documents I always recommend that they become effective only on disability. Normally two treating Doctors can state you are unable to handle your own affairs and with a letter from them an the power of attorney your Agent can make decisions on your behalf.

The above documents are the start of any solid estate plan. They should be obtained when you turn eighteen it will offer you protection and save you money in case of an unfortuante accident.

It is called Estate Planning for a reason, this goes towards whether you need a trust. Estate Planning should be done through out your life. I recommend to my clients that we get together every 3-5 years to see if your plan still does what you want it to and if there have been any life changing events that require it to be updated.

A trust should be considered for one of three reasons, One tax planning, Two birth of children, Three Privacy.
Tax planning purposes certain types of trust are designed to help you save on estate taxes when you pass. In 2009 the estate tax level is 3.5 million dollars many people do not have to worry about that as their estates are modest, however if you are close to that amount an A-B Trust or charitable remainder trust could save you as much as 56% in estate taxes. (this limit on estate level will be unlimited in 2010 and congress is currently deciding on what to se tthe limit on for 2011.)

Children, Most people do not realize that in the US children under the age of 18 cannot inherit. If something were to happen to both parents the courts would confiscate all property of the decedents and hold them in Court coffers until the child or children turn eighteen. At which time they would have to petition the court for their share of the inheritance. Many children at age eighteen do not know how to handle money and if given a large cash windfall may not realize what do do with it and know how to protect and grow it. Additionally, if the guardian needs money for the health, maintenance or education of the child or children they must petition the court for money. This could be costly and not guranteed that they will receive any money. If you set up a trust and pick a responsble succesor trustee, tha money is avilable for the education health and maintenance of tht child with out court intervention. The better part is if your estate is large enough you can distribute it to the child in a tiered distribution through out their life so they will have money at selected times in their life when they could use it. For example a common distirbution is four tiered at ages 18, 22, 27 and 35. These are the average ages of graduation from high school, college average age of marriage and buying a home. Further the money cold be protected from potential creditors of the children if there is spending issues or other issues with the child.

Privacy. Probate is public record, as an attorney I have been told many stories of how people use the probate records to determine who to go after in some type of scam. If you set up a trust you can avoid a lot of information that must go into probate records. I never advise to avoid probate, but I do recommend to put as much into your trust as possible and limit what needs to go through probate. When asked why do I recommend any type of probate my response is if ou file a probate you can limit any type of claims on your estate depending on what your state laws are. In Arizona, if an informal probate is completed you can usually wrap up an estate in 5-7 months. Any potential Creditors have only 4 months from date of publication or notice to make a claim or forever be barred from bringing it. This has saved clients from hospital bills that were never submitted in time after notification was given.

It is recommended that you speak with an attorney in your state to become ducated on your estate laws. The views and opinions in this blog do not constitute legal advice. If you wish to talk to an attorney about estate planning, wills, trusts or probate you can contact Marc Paquette at 480-993-6650 if you are an Arizona Resident. If you live outside the state of Arizona please ocntact your local attorney who practices in Estate Planning.