GOAL OF ESTATE PLANNING - If you have real or personal property and you want that property to be distributed to your family or friends,  you have to make a plan to make sure that your wishes are carried out.  That plan is an Estate Plan.   You will need to have the proper documents prepared.    You have to consider several issues, in deciding how you want your property distributed.   The type of property you own, your age, marital status, and health are all important considerations.  The age, health, and marital status of your beneficiaries are also important.

You also need to consider how you want your property distributed and decide who should get your property if an intended beneficiary should die before you.  

I have included descriptions of several common documents you may need as part of your Estate Plan.  You may need some or all of them depending upon your plan and the type of property that you own.  All the documents have to be prepared and signed and some have to be witnessed and notarized.   

WILL

A will is the document you prepare  which states your wishes regarding your property.  You may make specific gifts of property,  and sometimes provide that the balance of the property be split among a group of beneficiaries.  For example, "I want my coin collection to go to my grandson and I want the remainder  of my property split among my three children".    You can  change your will at any time to change the property or the beneficiaries of your property.   It is important to think about possibilities in the future when you are preparing a Will.  For example, if you want your property to be distributed to your children, do you want your grandchildren to receive the property if one of your children has died?  This is a difficult but necessary consideration.  Additionally, if your beneficiaries are young or not experienced handling money,  it may not be a good idea to give that person money in installments.  You may want to provide that money be put into a trust and paid to the beneficiaries over a period of time.  The Will should be drafted properly to set forth your intentions and it should be formally executed.  

REVOCABLE LIVING TRUSTS

Revocable Living Trusts are by far the best alternative for an Estate Plan because it makes the distributions of property to your beneficiaries easier and faster.   It helps to avoid probate and may help to minimize  the costs to your Estate.    The person who sets up the Trust, is the Settlor and the initial Trustee.  The Trustee has the power to revoke the Trust or change the terms at any time.   You can buy additional property or sell property in the Trust.   It accomplishes the sale goals as a Will but, helps to avoid the time and expense of probate.  This is highly recommended as a tool to increase the speed of distribution and reduce the costs.

ALTERNATIVES TO TRANSFERRING PROPERTY BY WILL OR TRUST

The goal of Estate planning is to make sure that your property is transferred to the family members or friends that you choose.  This can also by other means.  I will list some options but the list does not detail every possibility and some of the alternatives have potential problems. .

1.  Joint Title with Survivorship -  If you own real estate and, it is the only asset you own,  a deed which transfers the property to "you and the other person, as joint tenants with the right of survivorship" may accomplish your goal.  If you are married, your deed to your house may be to you and your spouse as husband and wife.  This is also a type of joint ownership in which the survivor will own the property after the first spouse passes away.

2. ITF Bank  Accounts - If you have money in a bank account and want that money to pass to a person when you die, you can set up a bank account to accomplish that same goal.

3.  Beneficiary Designation - This is an extremely important consideration for most people.  When you buy insurance or set up a retirement account you normally choose a beneficiary.  This beneficiary designation  does not  automatically change.   If you get a divorce or retire and move away, the beneficiary designation does not automatically change.  It is important to review these to make sure they reflect your intentions.  Often life insurance is purchased with premiums over 20 or more years and the intended beneficiary may change or not be available or even alive.  

 LIVING WILL

A Living Will is a document you prepare to state your desires regarding being kept alive by life support equipment.  under certain conditions.  It can be helpful to consider this so that your family can understand how you feel about the issue.   Medical Science may be able to keep us alive for an extended period of time,  even if the chance or recovery is minimal.  This form states a persons intentions in that regard.