While meeting an estate planning attorney may not be on your to-do list for the rest of your life or between your New Year’s resolutions, it’s not something you should put off until you’re on your deathbed. Many people are intimidated by the prospect of planning their possessions, but, in most cases, it’s a lot easier if you prepare yourself.
A typical Florida estate plan consists of the following important documents: Final Will and Agreement; Revocable Trust (for many individuals); Power of attorney; Health Care Substitutes; Life Will; and Pre-Necessary Guardian Declaration. The Revocable Trust (if applicable), Power of Attorney, Substitute Health Care, Living Will, and Pre-Required Guardian Declaration are all designed to operate during your lifetime and provide guidance on how your personal and financial affairs are handled during your lifetime. In contrast, Revocable Trust and Final Will and Agreements control how your property is distributed after your death.
When you meet with your real estate planning attorney, they will guide you through the various planning options and options available to you, so that your legal documents reflect your intentions. To make your time with your attorney most productive, here is a list of things you should discuss and prepare before the meeting:
List your assets and liabilities. This list should include the value of your home (including mortgage), bank accounts, investment accounts, business interests, personal items with value (for example, artwork or jewelry), insurance policies on your living and retirement accounts. For each asset on the list, include an estimated value or current balance, as well as whether you own the asset in your personal name or in a joint name with others, such as your spouse or children. This information will assist your attorney in guiding you through the planning process.
Agent For Your Life
Health Care Substitutes: Who will make medical decisions for you if you become incapacitated. The individual you name to serve as a substitute for your health care will be empowered to make health care decisions for you, if you are unable to do so. Consider who should be appointed to this position, along with his successor.
Power-of-Attorney: Who will take care of your financial affairs if you become incapacitated. The person you name as your proxy will act as your agent with respect to your financial matters for the rest of your life. The power of attorney will become effective as soon as you sign it. Consider who should be appointed to this position, along with his successor.
Living Will: The Final Decision of Life. The person you name as your successor will act as your agent with respect to your financial matters for the rest of your life. The power of attorney will become effective as soon as you sign it. Consider who should be appointed to this position, along with his successor.
Administration After Your Death
Who has the ability and skills to serve as your Personal Representative. The individual or professional entity you choose to serve as the Personal Representative of your will will be charged a settlement fee upon your death. Their duties include collecting your assets, paying any debts, expenses, and taxes that may be due and then distributing the remaining inherited assets to your beneficiaries. With a married couple, each partner usually names the other to act as their personal representative. The next consideration is who or what entity will be their successor, if they fail to survive or are unable to serve you. You can name more than one individual to play this role, but by Florida law they must be a family member or a resident of the state. Most importantly, it is important that the selected individual or entity is trustworthy.
Who has the ability and skills to be your Trustee. The individual or professional entity you choose to serve as your Trustee, upon your death or inability to serve, will be responsible for managing your financial affairs, while you are still alive, and for settling your financial affairs after your death. Similar to Personal Representatives, their duties include collecting your assets, paying any debts, expenses, and taxes that may be due and then distributing the remaining inherited assets to your beneficiaries. With a married couple, both partners usually act as guardians, for as long as they can afford. The next consideration is who or what entity will be their successor, if they fail to survive or are unable to serve. You may name more than one individual to perform this role, with no family membership restrictions or state residents. Most importantly, it is important that the selected individual or entity is trustworthy.
Personal Property and to whom they must be passed on after your death. Create a written document stating how you would like to dispose of your personal belongings (wedding rings, jewelry, car, baseball card collection, etc.) at the time of your death, even if you are not sure they have any monetary value. Without a separate written statement, your personal belongings will be passed on to your surviving spouse or divided equally among your children or heirs. An itemized list could potentially avoid family disputes over items of sentimental value but no money.
Plans for Your Estate Distribution. How, to whom, and in what amount you want your remaining real estate assets to be distributed are the next important decisions you need to consider. Your assets can be distributed to any individual (family member, friend, acquaintance, etc.) or charity of your choice. The assets can be distributed immediately or over a long period of time (reaching a certain age, until the recipient needs or wants funds, etc.). There is no wrong decision because you are free to distribute your assets as you choose.