The basics of estate planning
The lessons from Terri Schiavo case that made front-page news in 2005 are a) get your affairs in order and b) discuss your wishes with all of your family members. Everyone needs to think about estate planning now – while they are healthy. Once a person is incapacitated or incompetent it is too late.
There are four basic documents that every competent person over the age of eighteen years old should have as part of a basic estate plan. These are: a Last Will And Testament; a Declaration of Desire for Natural Death; a Post-Incompetency Durable Power of Attorney and a Healthcare Power of Attorney.
Last Will and Testament
A Last Will and Testament is a document that distributes property and possessions (after taxes, debts and expenses of your estate are paid) to those whom you wish to have them. The document also lets you appoint a guardian for your minor children and a custodian for the minor child’s property. A well drafted Last Will and Testament will also contain provisions that enable you to minimize Federal Estate Taxes.
If a person dies with a will they are said to have died testate where as a person who dies without a will is said to have died intestate. The person making their will is referred to as the Testator. In their will, the Testator appoints someone to settle their estate after their death. This person is referred to as the Executor. The Executor’s role is to gather the estate’s assets, pay debts, taxes and expenses of the estate and distribute the net estate according to the terms of the Testator’s Will. The Executor’s role ends after those duties are carried out and the estate is closed.
The guardian of minor children is the person who will care for the minor children. The custodian of the property of the minor children will manage the minor’s property and distribute funds necessary for the care, education, maintenance and support of the minor children. The guardian and the custodian may be the same person or may be two different people. Because some people are better at caring for children than they are with handling money, the guardian and custodian duties are sometimes not given to the same person.
If a person dies intestate, the Clerk of Court will appoint someone to serve as the Administrator of the intestate’s estate. The duties of an Administrator are the same as an Executor. Personal Representative is also a term used to describe an Executor or Administrator.
