What Are the Basic Core Estate Planning Documents
by
Robert Schaller on Jan. 09, 2023
Estate Estate Planning Estate Wills & Probate Estate Trusts
Summary: Estate planning requires planning for the future, both while alive and after passing. Every adult, married or single, should have a power of attorney for health, power of attorney for property, a living will, and a last will and testament. A living trust should be considered for estates larger than $100,000 or involving real estate to avoid the high cost of probate.
Attorney Robert Schaller believes that every adult, married or single, should have a power of attorney for health care because people can become incapacitated in a split second. Some people have heart attacks, strokes, or are involved in a vehicle collision. A person can designate an agent to make health-related decisions for the incapacitated person in times of crisis.
Similarly, Robert Schaller suggests that every adult have a power of attorney for property in case the person becomes incapacitated. The power of attorney for property designates an agent to make financial-related decisions for the incapacitated person.
A last will and testament distributes a person's estate after death. People who die without a will die "intestate" and the probate court will distribute a decedent's assets according to the priorities established by the laws of the State of Illinois, which may not match the desires of the decedent. The last will and testament directs the distribution of the decedent's assets according to the decedent's wishes.
Finally, a living trust should be considered by anyone wishing to avoid the high cost of probate. Probating an estate could cost $15,000 or more and involve attorneys charging $299 per hour or more. A living trust is sometimes called a revocable grantor trust. It can destribute assets like a last will and testament, but a living trust is a tool that can help avoid probate and save devastating estate taxes payable to the Internal Revenue Service and the State of Illinois.