{"id":55,"date":"2023-02-15T21:09:39","date_gmt":"2023-02-15T21:09:39","guid":{"rendered":"https:\/\/adptsretirement.com\/retirementplanningguide\/?page_id=55"},"modified":"2023-03-16T20:49:01","modified_gmt":"2023-03-16T20:49:01","slug":"4-estate-planning","status":"publish","type":"page","link":"https:\/\/adptsretirement.com\/retirementplanningguide\/4-estate-planning\/","title":{"rendered":"4: Estate Planning"},"content":{"rendered":"
[vc_row layout=”wide” css=”.vc_custom_1676642864273{border-bottom-width: 1px !important;border-bottom-color: #d0271d !important;border-bottom-style: solid !important;}”][vc_column offset=”vc_hidden-sm vc_hidden-xs”][layerslider_vc id=”5″][\/vc_column][\/vc_row][vc_row layout=”wide” css=”.vc_custom_1676642864273{border-bottom-width: 1px !important;border-bottom-color: #d0271d !important;border-bottom-style: solid !important;}”][vc_column offset=”vc_hidden-lg vc_hidden-md”][vc_single_image image=”561″ img_size=”full” alignment=”center”][\/vc_column][\/vc_row][vc_row css=”.vc_custom_1676578670558{padding-top: 40px !important;padding-bottom: 20px !important;}”][vc_column][vc_column_text]\n

Everyone has an estate. And everyone passes away. But not everyone has a plan for their estate when they pass away. That\u2019s when things can get messy. By getting your estate in order now, you can help avoid potential problems at a time when family members are already dealing with the loss of a loved one.<\/h4>\n

Now what happens?<\/strong><\/span><\/h3>\n

When you pass away, what happens to your assets? If you still have children in the house, who looks after them? Will estate taxes leave little for your heirs? Proper estate planning can help ensure these and other important issues are addressed before you pass away \u2013 so you don\u2019t leave behind a legacy of headaches. Contrary to many people\u2019s beliefs, estate planning is not only for the wealthy. It\u2019s for anyone with an estate. And that includes just about everyone.<\/h4>\n

It\u2019s important for you and your spouse\/partner to understand each others\u2019 wishes and to have them clearly documented. Click on the \u25bc buttons below to learn more about the things to consider discussing with an estate attorney:<\/span><\/span><\/h4>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_placement=”top” css=”.vc_custom_1676577565432{padding-top: 10px !important;padding-bottom: 10px !important;}”][vc_column width=”1\/3″][vc_column_text]<\/a>[\/vc_column_text][vc_single_image image=”387″ alignment=”center” css=”.vc_custom_1676636524143{padding-bottom: 20px !important;}”][vc_tta_accordion style=”flat” shape=”square” gap=”20″ c_icon=”triangle” active_section=”0″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Wills<\/strong>” tab_id=”1561050619657-feceb993-fff2″][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1676637721125{padding-bottom: 20px !important;}”]\n

Simple Wills<\/strong><\/b><\/span><\/h4>\n

Most people assume that their assets automatically get passed on to their spouse\/partner, children or other family members. Not necessarily. A simple will is the one most people associate with the word \u201cwill.\u201d It provides a basic list of instructions that tells the courts exactly how you want your estate settled. If you pass away without a will, your estate will be left to the courts, which could tie up your assets for a long time and diminish your estate with taxes that might have been avoided. And, most important, your estate may not be distributed according to your wishes.<\/span><\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1676637743655{padding-bottom: 20px !important;}”]\n

Living Wills<\/strong><\/b><\/span><\/h4>\n

A living will has nothing to do with distributing your property after your death. Instead, it allows you to choose what medical treatments you want to have if you become incapacitated. In a living will, you may also name someone to make decisions on your behalf. In some states, an advance healthcare directive combines a living will and a healthcare power of attorney or proxy, so it is crucial for you to understand your state\u2019s laws on this issue.<\/span><\/p>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][vc_column width=”1\/3″][vc_single_image image=”385″ alignment=”center” css=”.vc_custom_1676636518644{padding-bottom: 20px !important;}”][vc_tta_accordion style=”flat” shape=”square” gap=”20″ c_icon=”triangle” active_section=”0″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Power of Attorney<\/strong>” tab_id=”1676578196274-24415789-ffeb”][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1676636898156{padding-bottom: 20px !important;}”]\n

In general, a power of attorney (POA) is a legal document that allows you to appoint another person to take control of your affairs should you become unable to effectively do so. The person appointed becomes the agent, or Attorney-in-Fact, and the person who appoints is known as the principal. There are various types of powers of attorney and the one that you choose depends on the requirements of your current situation.<\/span><\/p>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner css=”.vc_custom_1676637882777{margin-right: 1px !important;margin-left: 1px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;padding-top: 20px !important;padding-right: 20px !important;padding-bottom: 20px !important;padding-left: 20px !important;background-color: #26328c !important;border-left-color: #d0271d !important;border-left-style: solid !important;border-right-color: #d0271d !important;border-right-style: solid !important;border-top-color: #d0271d !important;border-top-style: solid !important;border-bottom-color: #d0271d !important;border-bottom-style: solid !important;}”][vc_column_inner][vc_column_text css=”.vc_custom_1676637223286{padding-bottom: 20px !important;}”]\n

Non-durable vs. Durable<\/strong><\/b><\/h4>\n

The non-durable power of attorney is used only for a set period of time and usually for a particular transaction in which you grant your agent authority to act on your behalf. Once the transaction is completed, or should the principal become incapacitated during this time, the non-durable power of attorney ceases.<\/span><\/p>\n

The durable power of attorney is much more encompassing than the non-durable power of attorney and it can be used to allow an agent to manage all the affairs of the principal should they become unable to do so. It does not have a set time period and it becomes effective immediately upon the incapacitation of the principal. It does expire upon the principal\u2019s death.<\/span><\/p>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner css=”.vc_custom_1676637891806{padding-top: 20px !important;}”][vc_column_inner][vc_column_text css=”.vc_custom_1676636953715{padding-bottom: 20px !important;}”]\n

Financial<\/strong><\/b><\/span><\/h4>\n

Grants authority to manage the financial life of the principal when that person is unable to do so. The agent can legally manage the principal\u2019s finances and property, make all financial decisions, and conduct all financial transactions that are within the scope of the agreement.<\/span><\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1676637011864{padding-bottom: 20px !important;}”]\n

Medical<\/strong><\/b><\/span><\/h4>\n

Grants authority to take specific control over the health care decisions of the principal should they become incapacitated or unable to do so. This usually takes effect upon the consent of the presiding physician and it allows the agent to authorize all medical decisions related to the principal.<\/span><\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1676637277798{padding-bottom: 40px !important;}”]\n

Parental<\/strong><\/b><\/span><\/h4>\n

Grants authority to another adult when a parent or guardian becomes ill or hospitalized, travels, or is otherwise unable to care for their child for a short period of time<\/span>.<\/span><\/p>\n[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][vc_column width=”1\/3″][vc_single_image image=”386″ alignment=”center” css=”.vc_custom_1676636509442{padding-bottom: 20px !important;}”][vc_tta_accordion style=”flat” shape=”square” gap=”20″ c_icon=”triangle” active_section=”0″ no_fill=”true” collapsible_all=”true”][vc_tta_section title=”Trusts<\/strong>” tab_id=”1676578272328-bc9c3d5e-26ab”][vc_row_inner][vc_column_inner][vc_column_text css=”.vc_custom_1676637323061{padding-bottom: 20px !important;}”]\n

A trust is a fiduciary arrangement that allows another person, or trustee, to hold assets on behalf of beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries. Since trusts usually avoid probate, your beneficiaries may gain access to these assets more quickly than they might to assets that are transferred using a will. Assets in a trust may also be able to pass outside of probate, saving time, court fees, and potentially reducing estate taxes as well.<\/span><\/p>\n[\/vc_column_text][vc_column_text css=”.vc_custom_1678987032138{padding-bottom: 20px !important;}”]\n

Types of Trusts<\/strong><\/b><\/span><\/h4>\n