The estate planning attorneys at Eethar Ismail Law Professional Corporation work with individuals, families and businesses on all aspects of protecting and planning for an estate.
These are just some of the issues we help clients plan for and resolve.
There is nothing we like more than to hear a client say, “I didn’t know I could do that. This has given me such peace of mind.”
Your estate plan may be based on a traditional Will or a Revocable Living Trust. If you are wondering which estate planning vehicle is right for you, the following information may be helpful to you in making that decision.
The basic difference between a Will and a revocable living trust is that a Will needs to be submitted to the probate court before it can be effective, while assets in a revocable living trust (and accounts passing to the revocable living trust by beneficiary designation) can be controlled by the successor Trustee and distributed to the deceased person’s beneficiaries without having to go through the probate process.
There is also no need to file a public inventory of the deceased person’s assets with the court if the assets are in the name of the revocable living trust, nor is there a requirement to publish a notice to creditors in a local newspaper.
Because a probate court procedure needs to be completed in every state in which a deceased person owned real estate, estate planning with a revocable trust also helps prevent the time and expense it takes to go through the probate procedure in multiple states.
If there is a concern that a Will may be contested, a revocable living trust is the better vehicle for an estate plan. If a Will is contested, even if the contest is of no merit, no actions may be taken regarding the deceased person’s estate until the contest is resolved. If assets are in a revocable trust, the successor Trustee may continue to have access to the deceased person’s assets and manage the trust, unless the contestant is successful in obtaining a restraining order (which is more difficult than merely filing a Will contest).
A power of attorney is a legal document giving another person (the attorney-in-fact) the legal right (powers) to do certain things for you. What those powers are depends on the terms of the document.
A power of attorney may be very broad or very limited and specific. All powers of attorney terminate upon the death of the maker, and may terminate when the maker (principal) becomes incapacitated (unable to make or communicate decisions). When the intent is to designate a back-up decision-maker in the event of incapacity, then a durable power of attorney should be used.
Durable Powers of Attorney should be frequently updated because banks and other financial institutions may hesitate to honor a power of attorney that is more than a year old.
During the estate planning design meeting, your Eethar Ismail Law Professional Corporation attorney will review your assets and your goals and will make recommendations as to which estate planning vehicle would best suit your needs.