Planning for the future is essential to ensure your assets are distributed according to your wishes and that your loved ones are cared for after you’re gone. Trusts and estates law encompasses a wide range of legal tools designed to protect your wealth, minimize taxes, and clarify your healthcare and financial decisions when you can no longer make them on your own.
At Bartlett Law, PLLC, we help individuals and families navigate estate planning with wills, trusts, powers of attorney, and other essential documents. A well-structured estate plan can prevent legal disputes and provide peace of mind that your affairs are in order.
Advance Healthcare Directives
Advance healthcare directives allow individuals to specify their medical preferences in the event they become incapacitated and are unable to communicate their wishes. These legally binding documents ensure that healthcare providers and loved ones understand how to proceed with medical decisions in accordance with your wishes.
A living will outlines specific treatments a person wants—or does not want—such as life support, resuscitation, or feeding tubes. Another option is the medical power of attorney, which designates a trusted individual to make healthcare decisions on behalf of the incapacitated person. Without these directives, family members may struggle with difficult choices or face legal challenges in determining the best course of action.
Beneficiary Designations
Beneficiary designations are crucial in estate planning, as they determine who will receive certain assets upon an individual’s passing. Retirement accounts, life insurance policies, and payable-on-death bank accounts transfer directly to the named beneficiary, bypassing probate. However, improper or outdated beneficiary designations can lead to unintended asset distribution or legal disputes.
Because beneficiary designations override the instructions in wills and trusts, it is essential to review them periodically. Major life events—such as marriage, divorce, or the birth of children—can necessitate changes to ensure assets go to the right individuals. Failing to update beneficiary designations may result in an ex-spouse or estranged family member inheriting assets instead of the intended heirs.
Powers of Attorney
A power of attorney is a legal document that grants another person the authority to make financial or medical decisions on behalf of an individual. There are two primary types: financial power of attorney and medical power of attorney, both of which play a crucial role in managing affairs during incapacity.
A financial power of attorney allows a designated agent to handle banking, investments, real estate transactions, and bill payments. This document can be durable, meaning it remains in effect even if the principal becomes incapacitated or limited, granting authority for specific situations.
Trusts
A trust is a legal arrangement that allows individuals to manage and distribute their assets according to specific terms, often helping to avoid the costly probate system. They can also minimize estate taxes and protect assets, among other benefits. There are multiple types of trusts, each serving different purposes based on an individual’s financial goals.
A revocable living trust allows the grantor to maintain control over assets during their lifetime while specifying how they should be distributed after death. This type of trust avoids probate, ensuring a quicker and more private transfer of assets. An irrevocable trust, on the other hand, transfers assets out of the grantor’s control, providing protection from creditors and reducing estate taxes.
Wills
A will is a fundamental estate planning document that outlines how a person’s assets should be distributed after their passing. It also allows individuals to appoint guardians for minor children, designate an executor to manage their estate and provide instructions for the settlement of debts and taxes.
If a person dies without a will, state laws determine how their assets are distributed. This outcome may not align with their preferences and lead to family disputes. Wills should be reviewed and updated periodically, especially after significant life events such as marriage, divorce, or the birth of children, to ensure they reflect current wishes.
Talk to Bartlett Law, PLLC Today, About Your Legal Issue
Thoughtful estate planning provides peace of mind, letting individuals know their legacy will be preserved according to their wishes. If you are ready to plan for the future, attorney Rhett Bartlett is here to help. Contact Bartlett Law, PLLC, as soon as possible to discuss your options during a private consultation with our firm.