5 Estate Planning Documents You Need Now

[Pages:4]5 Estate Planning Documents You Need Now

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5 Estate Planning Documents You Need Now

Protect what you've worked hard for

If you have assets, you need to think about how to protect them, no matter what your age. And you need to make decisions about how your affairs will be handled when you die or if you become incapacitated.

? Who will manage your assets, your medical, health and life care decisions?

? Who will care for your minor children or children of any age with special needs or who are not good with money?

It's best to develop a plan now, so that you don't have to worry about it when

a crisis hits later. Here are the FIVE documents you should put in place as

soon as you can.

1 WILL A Will is essential to ensuring that your decisions are honored after you are gone. It's your way of enforcing how and to whom your property will pass upon your death. Without a Will, the state will determine who gets what.

Without a Will, the state will determine who gets what.

? If you have children under the age of 18, it is critical that you have a Will so you can dictate who will provide care and guidance. Without one, you leave that decision to a judge.

? In your Will, you name your executor ? the person who will pay your final expenses and distribute your assets according to the instructions you've provided.

BEWARE: A Will doesn't include instructions for who gets such assets as IRA accounts, annuities, life insurance policies and other assets that have beneficiary designations or assets that are registered jointly with another person. Be sure to choose your beneficiaries immediately and make sure those designations are up to date.



2 DURABLE POWER OF ATTORNEY A Power of Attorney (POA) is a document whereby you name someone to act on your behalf on financial matters. It is an extremely powerful document that can be used for a variety of Medicaid and estate planning needs, including those that are unforeseen.

Since this person will make financial decisions on your behalf, it is critical that you select this person carefully. A traditional POA terminates upon your disability or death. However, a durable power of attorney will remain in effect regardless of your subsequent incapacity.

3 HEALTH CARE REPRESENTATIVE A health care representative, formerly known in Connecticut as a health care agent or health care power of attorney, is someone you designate to be responsible for all your health decision matters when you are unable to do so yourself. This includes your wishes regarding life support. Think of this person as your voice ? when you can't speak. This is how important it is that you choose wisely.

4 LIVING WILL A living will is a document that directs medical personnel to withhold or withdraw life support systems that merely prolong the dying process. You do not appoint an individual; you create your own directives to your doctors about your wishes for your future medical treatment.

One purpose of a living will is that there will be no questions about your intentions. A wonderful benefit of this document is that you will be leaving your loved ones with a clear conscience as they act on your behalf during a difficult time.

Connecticut has a standard form for this directive, and we recommend using this form with as little modification as possible.



5 REVOCABLE LIVING TRUST It is wise to add a trust to your estate plan. Like a Will, a revocable living trust provides instructions as to who gets what. But a trust offers more protection than if you just had a Will.

? If your loved ones are too young, if they're not great at managing their

A Trust offers

finances, are in not-so-great marriages, or just too incapacitated to handle property on their own, a trust can further protect what you leave behind.

more protection ? A trust can also help reduce or eliminate the estate taxes your loved ones than if you just would have to pay upon your death.

had a Will.

? With a trust, your will won't have to go through probate ? that lengthy,

often expensive process where the court oversees the distribution of your

assets after you die.

? A trust also keeps the details of your estate private, because the trust is not filed with the Probate Court. Probate proceedings are public and if your estate goes through probate at your death, your estate and financial holdings become a matter of public record.

? Wills are far more likely to be challenged than trusts. With a trust, you can protect your beneficiaries and spare them from disgruntled individuals who think they should get your hard-earned money.

BEWARE: As with your Will, you will need to choose beneficiaries on your IRAs, annuities, life insurance policies, etc. These accounts will not be part of your Trust.

While having these five documents in place is important, you should review them periodically to ensure they remain up-to-date. Significant changes such as births, deaths and divorce may cause you to want to change some of the instructions. At CzepigaDalyPope&Perri, our mission is to take the confusion out of estate planning. To find out more about the ways you can protect your assets and plan for your future, feel free to contact us at (860) 236-7673 or plantoday@.



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