What Key Estate Planning Tools Should I Know About?
By taking steps in advance, 你 have a greater say in how these questions are answered. And isn’t that how it should be?
Wills and trusts are two of the most popular estate planning tools. Both allow 你 to spell out how 你 would like 你r property to be distributed, but they also go far beyond that.
Just about everyone needs a will. Besides enabling 你 to determine the distribution of 你r property, a will gives 你 the opportunity to nominate 你r executor and guardians for 你r minor children. If 你 fail to make such designations through 你r will, the decisions will probably be left to the courts. Bear in mind that property distributed through 你r will is subject to probate, which can be a time-consuming and costly process.
Trusts differ from wills in that they are actual 法律 entities. Like a will, trusts spell out how 你 want 你r property distributed. Trusts let 你 customize the distribution of 你r estate with the added advantages of property management and probate avoidance. While trusts offer numerous advantages, they incur upfront costs and ongoing administrative fees. The use of trusts involves a complex web of tax rules and regulations. You should consider the counsel of an experienced estate planning professional and 你r 法律 and tax advisers before implementing such strategies.
Wills and trusts are not mutually exclusive. While not everyone with a will needs a trust, all those with trusts should have a will as well.
Incapacity poses almost as much of a threat to 你r financial well-being as death does. Fortunately, there are tools that can help 你 cope with this threat.
A durable power of attorney is a 法律 agreement that avoids the need for a conservatorship and enables 你 to designate who will make 你r 法律 and financial decisions if 你 become incapacitated. Unlike the standard power of attorney, durable powers remain valid if 你 become incapacitated.
Similar to the durable power of attorney, a health care proxy is a document in which 你 designate someone to make 你r health care decisions for 你 if 你 are incapacitated. The person 你 designate can generally make decisions regarding medical facilities, medical treatments, 手术, and a variety of other health care issues. Much like the durable power of attorney, the health care proxy involves some important decisions. Take the utmost care when choosing who will make them.
A related document, 生前遗嘱, also known as a directive to physicians or a health care directive, spells out the kinds of life-sustaining treatment 你 will permit in the event of 你r incapacity. The directive creates an agreement between 你 and the attending physician. The decision for or against life support is one that only 你 can make. That makes 生前遗嘱 a valuable estate planning tool. And 你 may use a living will in conjunction with a durable health care power of attorney. Bear in mind that laws governing the recognition and treatment of living wills may vary from state to state.
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The information in this article is not intended to be tax, 法律, 投资, or retirement advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or 法律 professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2024 Broadridge Financial Solutions, Inc.