Wills

A will is a legal document that outlines how a person’s assets will be distributed after their death. It is a crucial part of estate planning, which is the process of arranging for the management and distribution of a person’s assets after their death.

In a will, a person can name the people or organizations that they want to inherit their assets, as well as appoint a person to be the executor of their estate. The executor is responsible for carrying out the instructions in the will, paying any debts or taxes owed by the estate, and distributing assets to the named beneficiaries.

Here are some reasons why everyone should have a will, regardless of their age:

1. Ensuring your assets are distributed according to your wishes: Without a will, state law will determine how your assets are distributed after your death. This may not reflect your true wishes, and may even result in disputes among family members.
2. Naming guardians for minor children: A will allows you to nominate a guardian for your children in case both parents pass away. This can provide peace of mind and ensure that your children are cared for by someone you trust.
3. Making the probate process smoother: Probate is the legal process of settling an estate, and having a will can make this process smoother and faster.
4. Minimizing estate taxes: A well-crafted will can help minimize estate taxes and ensure that your beneficiaries receive the maximum amount possible.
5. Planning for incapacity: A will can also include provisions for managing your assets in case you become incapacitated and are unable to make decisions for yourself.

Overall, a will is an important tool for anyone who wants to ensure that their assets are distributed according to their wishes and their loved ones are taken care of after they pass away. Regardless of age, it’s never too early to start thinking about estate planning and creating a will.

Trusts

While almost everyone should have a will, not everyone needs a trust. However, trusts can provide certain benefits that a will alone cannot.

One of the main benefits of a trust is privacy. A will becomes a matter of public record once it is filed with the probate court, and anyone can access the information in the will.

In contrast, a trust is a private document that is not filed with the court, and the details of the trust’s assets and beneficiaries are not made public. This can be an important consideration for people who value their privacy or want to keep their affairs confidential.

Trusts can also provide flexibility in how assets are managed and distributed.

For example, a person may create a trust that allows for the gradual distribution of assets to beneficiaries over time, rather than all at once. Trusts can also include specific instructions on how assets should be managed and invested, and can name a trustee to oversee the trust and ensure that its terms are carried out.

Another benefit of a trust is that it can help avoid probate for certain types of assets. For example, if a person places their home or vehicle in a trust, these assets can pass directly to the named beneficiaries without going through probate. This can be a significant advantage, as probate can be a time-consuming and expensive process.

It’s important to note that creating a trust can be more complicated and expensive than creating a will, and may not be necessary for everyone. However, for those who value privacy, flexibility, and the ability to avoid probate, a trust can be a useful estate planning tool. It’s best to consult with an experienced estate planning attorney such as myself to determine whether a trust is appropriate for your individual circumstances. I would be happy to meet with you and answer your questions.

Power of Attorney

A Power of Attorney (POA) is a legal document that gives a trusted person the authority to make decisions on your behalf. A POA can be used to manage your finances, your healthcare, or both.

In terms of finances, a POA can authorize someone to pay bills, manage bank accounts, sell property, and make other financial decisions. This can be especially important in cases where you become incapacitated or are unable to manage your own finances due to illness or injury.

A POA for healthcare, also known as a healthcare proxy, allows someone to make medical decisions for you if you are unable to make them for yourself. This can include decisions about treatment options, end-of-life care, and other healthcare decisions. It is important to discuss your healthcare wishes with the person you name as your healthcare proxy to ensure that they understand your wishes and are willing to carry them out.

Having a POA is a critical part of estate planning, as it can help avoid confusion and conflict in times of challenge and grief. Without a POA, family members may not know who is authorized to make decisions on your behalf, which can lead to disputes and confusion. By having a clear and legally binding POA, you can ensure that your wishes are carried out and your loved ones are spared unnecessary stress and conflict during a difficult time.

It’s important to note that a POA is only effective while you are alive and can be revoked or amended at any time. It is also important to choose a trusted and reliable person to act as your agent under the POA, as they will have a significant amount of power and responsibility. Working with Michalski Law can help ensure that your POA is legally binding and tailored to your individual needs and circumstances. Please reach out and schedule a consultation, so we can ensure you have the protection you need.