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Frequently Asked Questions
What is a will and what happens if I die without one?
What is probate and why should it be avoided?
A will is a legal document that says how a person's assets are to be distributed after death, and who will oversee his or her estate.
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When a person dies without a will, state law controls how the decedent’s estate is distributed. The rules are designed to provide for the decedent’s closest family members in a specific order of priority (spouse, children, parents, siblings, then more remote relatives), regardless of family circumstances or the decedent’s wishes. In other words, dying without a will could result in unintended or undesired consequences.
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Dying without a will also means your estate will have to go though probate in most circumstances.
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What is a trust and why are trusts better than wills?
Probate is a court proceeding used to transfer ownership of a deceased person’s assets to his or her beneficiaries or heirs.
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Probate is time-consuming. The process takes an average of one year to eighteen months to complete. Assets are tied up for a long period of time. Probate is expensive. Both the personal representative and the attorney are entitled to fees based on a percentage of the size of the estate. There are court filing, appraisal, bond, and publication fees as well. Probate is a public process, meaning your financial matters and family relationships become part of the public record.
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What is a durable power of attorney for health care?
A durable power of attorney for health care allows you to appoint another person to make decisions about your health care in the event you are too ill or otherwise unable to communicate your wishes. A durable power of attorney for health care also includes directives reflecting your wishes about end-of-life care and life support.
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It is important the person you appoint as your agent is not only someone you trust, but a person who is available and willing to serve, lives nearby, and will honor your wishes no matter what. This may or may not be your spouse, child, or parent. All individuals over the age of 18 should have a durable power of attorney for health care.
What is a financial power of attorney?
A financial power of attorney allows you to appoint someone you trust as your agent to act concerning your property, finances, and business interests. The agent must act in your best interest and based on the authority granted in the document and by law.
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A financial power of attorney is extremely useful for saving unnecessary time, money, and stress should it become necessary for someone to handle your affairs in the event of an emergency, prolonged illness, or unexpected absence. Without one, your bills could remain unpaid, your investments could be neglected, or any money owed to you could go uncollected. It could also become necessary for the court to have to appoint someone to act on your behalf.
In simplest terms, a trust is an agreement between the “Settlor” (the creator of the trust, whose assets are put into the trust) and the “Trustee” (the person who holds those assets), for the benefit of the “Beneficiary.” In estate planning, the agreement is typically made between you as the Settlor, and you as the Trustee, for the benefit of you as the Beneficiary. This arrangement allows you to retain control over the assets during your lifetime, and then transfer power to a successor trustee to distribute your trust assets upon your death.
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The primary advantage of a trust over a will is avoiding probate.​ Trusts offer several other advantages, such as:
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The ability to transfer ownership of your assets without delay and court approval.
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Protecting your privacy by permitting a successor trustee to handle and transfer your assets, rather than the court.
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The ability to control when and how beneficiaries receive property.
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Opportunities for advantageous tax planning and business succession planning.
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