Please note: This information is intended to get you thinking about the various documents and roles associated with estate planning, but it is not meant to be an exhaustive list and should not be regarded as legal advice. If you decide to engage further with our firm, we will review these terms in our first meeting and discern what is relevant to your specific circumstances
The Will is the document that governs the distribution of your assets after you pass away, with some exceptions. It is only operative at your death. In the process of establishing your Will, an Executor will be selected and appointed by you. The executor of your Will handles the estate administration and assists with the transfer of assets to your Beneficiaries. This should be someone you trust, who can make financial type decisions and follow the probate process and deadlines.
The Executor of your Will is the person who will manage your estate administration and assist your survivors with the transfer of assets to your Beneficiaries or to the trust, if that is elected. This should be someone who can make financial type decisions and follow the probate process and deadlines. There will be an option for this person to hire a lawyer or accountant to assist in the decisions that are more complex. For the Executor role, it is generally performed by a significant other, a trusted family member or close friend as long as the person is over 18, with help from an advisor.
Beneficiaries are the individuals that you name as the recipients of your assets as part of your estate planning. For example, if you are married and/or have children, you would likely name them as a beneficiary of your estate in your Will and/or Trust. You may also wish to name a charity or charities as a beneficiary of your Will and/or Trust. Beneficiaries designated in the documents may or may not also be named in one of the roles such as an Executor or Trustee. You can have multiple beneficiaries for different types of assets and in different percentages. There are many ways to go about distributing your assets to your designated beneficiaries.
The HCPOA is a document that establishes your healthcare wishes and enables you to appoint someone to make those healthcare decisions, including end of life decisions, if/when you are unable to do so for yourself. The person you appoint should be someone you trust to carry out your wishes. Many people appoint their spouse or significant other in which case, you may each appoint the other of you, then you can appoint a trusted family member or friend as successor as long as they are over 18. This appointed person is called the Attorney in Fact (or Agent) for Healthcare Decisions.
The DPOA is a document that allows you to appoint a person to handle financial matters if/when you are unable to do so for yourself. You should appoint a person who you trust to manage your finances for you because this person would have access to your finances upon your execution of this document. If you are married, you can each appoint the other and then should have at least one successor. You do not need to appoint the same successor(s) as a couple. The person you appoint must be over 18. This appointed person is called an Attorney in Fact (or Agent) for Finances.
The Revocable Trust is a document that operates both during your lifetime and at your death and can govern the assets that are held in it. It is a way to avoid the probate process and ensure the smooth transfer of assets after you pass away. It can also operate to hold assets for the benefit of minors. Within this document, you will appoint a Trustee to be responsible for managing your assets in the event that you are unable to do so. Because the document is revocable, you can change it and add or remove assets as long as you are competent but it does not offer personal asset protection.
The Trustee appointed by you and is responsible for managing the trust if it was funded. This would require the person to keep financial records of the trusts and potentially file accounting and tax returns, if needed. The trustee may hire an advisor, such as a lawyer and/or accountant to assist with these types of financial obligations. You may also appoint a lawyer or accountant to act in this role. Or you may appoint a family member along with an advisor if you feel that the family member would not be able to manage the details of the trust.
A Guardian is appointed to act in the event that you and/or your spouse or partner passes away while your children are minors. When selecting a Guardian, you might consider:
It is best to select at least two people to act in the event that one of them is unable or unwilling to act as Guardian.
I will listen to your needs and provide you with guidance so you can make the best decisions. I understand that these matters can seem complicated and overwhelming. I will answer your questions and help you and your family through every step of the process. Call or text me at (401) 648-6304 or use the contact form so we can set up a time to speak. The first 30-minute phone or virtual consultation is free.
