Varian Law LLC

A Trust Can Reduce Risks to Your Estate

What type of Trust is right for you?

There are many different types of Trusts, and they are all designed to achieve many different types of goals.  There are also many ways to use various types of Trusts within an estate plan, and it most likely will be beneficial for you to learn which ones will help achieve your goals, according to The Daily Sentinel in “Are you prepared for threats to your estate?”

Generally speaking, your Will ensures that your probate assets go to the people you want to receive them.  However, a basic Will may not achieve your goals.  In comparison, the proper use of a Trust can protect your assets and help ensure that your assets are distributed to the people you want, when you want, and how you want. One of the goals of a well-drafted Trust is to protect you, your Estate and your loved ones from unwanted and unintended outcomes.

Here are a few ways Trusts can protect your legacy and your family:

• If your spouse predeceases you and you are incapacitated from a stroke, a fall or other illness, a Trust can be used to ensure that your assets are protected and used to take care of your needs.
• Seniors, especially those who have lost a spouse, tend to be vulnerable to scams from both people they know and strangers who connect with them through telephone or email. A properly designed Trust can place a layer of protection on the assets and require a second (or even third) person to release funds.
• If your beneficiaries have financial problems, get divorced, encounter legal issues, or develop drug or alcohol problems, a properly designed Trust can protect your Estate from being taken by others.

Every family is different, and every family presents its own unique circumstances.  Everyone should meet with an experienced estate planning attorney and talk about how your estate plan can be designed to protect your family.

One last thought: if your family situation is so overwhelming that you feel like doing nothing, think again. If you don’t have a properly designed estate plan in place, your decades of work may be squandered, your children may have to spend more money in the court system than you would have wanted, and your legacy may disappear. 

Reference: The Daily Sentinel (Dec. 1, 2018) “Are you prepared for threats to your estate?”

Review Your Medical Directives Often

Medical Directives and other estate planning documents need to be kept up to date as the years pass by, according to the Watertown Public Opinion in “Keep medical directives up to date.” If you do have a Medical Directive and haven’t looked at it in years, then it’s time for a review to make sure it still reflects your wishes.

If you don’t have a Medical Directive and an emergency strikes, family members and medical providers have to make decisions without any input from you.

Medical Directives that are out-of-date often become useless. If a family member who was designated to make end-of-life decisions for a spouse is suffering from dementia, they are no longer legally competent to make any decisions.

One way to avoid this is to have an alternate person designated. Your spouse may be aging along with you, and one of you may not necessarily be able to make decisions when they are needed. Be sure that the alternate has the strength of character to make a decision that follows your wishes, even if it is not what your family wants to be done. They have to be able to follow your instructions, which is not always easy.

Just as important as having the documents created is having the conversation among family members about what you want or don’t want. Having that conversation and clarifying wishes will make it far easier for the family member or designated representative, because they will know they are doing what you want. This conversation may give the individual empowered to make the critical decision greater confidence and strength.

While it is (relatively) easier to have these conversations when everyone is in good health, a family member who is scared, grieving and emotionally overwhelmed may find themselves confronted with one of the hardest decisions of their lives.

That’s why it is so important for people to give their family members the clarity and direction they will need, when it comes to end-of-life care decisions. You will need to select a person with a strong backbone, who is not easily frazzled, and check in with them on a regular basis to make sure they can still perform the duties of their role.

An experienced estate planning attorney can advise you on creating an estate plan, or updating an estate plan, that fits your unique circumstances.

Reference: Watertown Public Opinion (Nov. 20, 2018) “Keep medical directives up to date”

Do Not Skip These Estate Planning Documents

What estate planning documents do you need in your lifetime?

When it comes to estate planning, people often focus on what is needed when you pass away. However, there are some key documents you do not want to go without in your lifetime, according to nwi.com in “Estate Planning: 3 important estate planning docs, and 2 maybes.” A key focus of the article is that everyone should have a POA, a Will, and an Advanced Medical Directive (including a Living Will).

How many times have you heard the story about someone’s aging mom becoming disabled and financial institutions asking if she has a POA? The problem is we are so reluctant to ask mom about a POA that we tend to neglect this difficult conversation. Then, when we are faced with an emergency, it is too late.    

An Advance Directive and Living Will are equally important to have in advance of a medical emergency. Among other things, with these documents in place to provide instructions for when you are terminally ill, you will have had the opportunity to state your wishes regarding medical care in advance.

The third must-have estate planning document is a Will.  Simply stated, the Will is the document where you tell your heirs exactly how you want your assets distributed.  If you have children who are not yet of legal age, you should also name a Guardian for them in your Will.

Another important estate planning document is a Trust. There are many different types of Trusts, and they all serve different purposes and achieve different goals.  Among other things, Trusts are used to protect assets.  An experienced estate planning attorney would be able to advise you on whether you should have a Trust.  Trusts are complex, and you will want to get one that best fits your needs.

Another document is called a “letter of instruction.” This is a set of directions that you leave to your family that tells them what you would like to happen. It is not legally binding, so it falls into the “maybe” document category. However, you may find it satisfying to put down on paper what you would like them to know, what you would like them to remember, etc.  If you want to dictate your funeral, memorial services and the like, work with an estate planning attorney to execute a funeral planning declaration, which can be legally enforced.

An experienced estate planning attorney can advise you in creating an estate plan that fits your unique circumstances and is specific to the laws of your state of residence.

Reference: nwi.com (Nov. 25, 2018) “Estate Planning: 3 important estate planning docs, and 2 maybes”