Preparing for the future
Estate Planning
Estate planning is the process of creating legal documents that govern the management and distribution of your assets and affairs during your life and upon your death. A typical simple estate plan that I prepare for clients consists of three main documents:
Last Will and Testament
Your Last Will and Testament is a document that outlines your final wishes for your property and minor children after your death. It specifies who receives your assets (beneficiaries), an executor or executrix to manage your estate, and can nominate legal guardians for any minor children. If you are a Pennsylvania resident and do not have a valid Last Will and Testament when you die, you are said to have died intestate. In this case, the Pennsylvania intestacy laws govern who gets your property and how much of your property they get.
Durable Power of Attorney
Your Durable Power of Attorney (DPOA) is a document in which you (“the principal”) grants a person (“your agent”) the authority to make financial, medical, and/or legal decisions on your behalf, even if you become incapacitated. In most cases, the DPOA is enforceable upon its signing. (A DPOA could also be drafted as a “springing DPOA” so that it becomes enforceable upon a condition(s) being met.) The word “durable” refers to the fact that the document is enforceable even if you become incapacitated. An agent under a durable power of attorney has authority to manage your assets and financial affairs as specified in the document. The agent may also have some ability to manage your medical affairs as specified in the document. An agent owes certain fiduciary duties to the principal and must act in the principal’s best interest.
Advance Healthcare Directive.
An Advance Healthcare Directive is a document that expresses your wishes for medical treatment and end-of-life care, including organ and tissue donations. This document gives your Healthcare Agent the power to speak for you when you cannot make decisions for yourself. An Advance Healthcare Directive document that has been approved by lawyers and medical professionals in Pennsylvania is available for download on the Allegheny County Bar Association website.
In some cases, you may want to establish a trust as part of your estate plan. You could establish a Special Needs Trust for a disabled beneficiary. If there is concern about the financial stability of a potential beneficiary, you could establish a Spendthrift Trust. Or you could establish a Testamentary Trust (created in your will and effective upon your death) for any minor children.
There is no one-size-fits all for estate plans. Allowing me to develop an estate plan tailored to you ensures that your preferences are honored and that your affairs are managed by someone you trust.
