MAKING PLANS
Estate Planning
You can read or download CurePSP’ s Estate Planning Guide and Organizer at http:// plannedgiving. curepsp. org or contact Joanna Teters at teters @ curepsp. org or call 347-294-2871 to have one mailed to you.
There are several benefits to making an estate plan:
Peace of mind for you— An estate plan is designed to provide for you during life should the unforeseen( your incapacity) happen and for your family when the foreseen( your passing) does occur.
Peace of mind for your family— An estate plan and documents will help guide your family if they need to make difficult decisions about your care and provide the authority they might need to do so, and to know what to do when you are gone. Consider your plan a final gift to your family and other loved ones at the very time they need it the most.
Distribution that you want— Without an estate plan of some type, the laws of your state determine what happens to your property. This is called intestate succession( property inheritance when there is no will). Very likely the distributions it dictates will NOT be the ones you would have chosen. And no state distribution law provides for gifts to friends or charities, or makes provisions for your pets. Make sure what you’ ve earned and accumulated in your lifetime goes to help those you love and causes you care about.
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Provide for your family – An estate plan is especially important if you have minor children, as it will name a guardian to care for your children. In many instances, it will establish a trust to help ensure their financial well-being.
Financially wise – A good estate plan will help streamline the distribution process, minimize administrative costs, and possibly reduce taxes that might otherwise be owed. That means you leave the most you can to the people you love and the causes you care about.
Related to your final wishes
• Will. A valid will is generally typed, dated, and signed by you as well as two legally competent witnesses. States differ as to whether a handwritten will, with or without witnesses, is valid.
• Revocable Living Trust. This can be used instead of a will as the main document disposing of your property. You might hear it referred to as a“ living trust” or“ RLT.” The trust is created while you are living, most often people serve as their own trustee, and the power to change and even revoke it can be retained. The living trust becomes irrevocable upon your death. A living trust requires that you actually transfer your property into it for it to be effective.
There are pros and cons with each approach, and an estate planning attorney can advise you as to which is best for your situation.
Note: Even if you decide upon a revocable living trust, you should still have what is called a“ pour-over” will. It catches any property that was, intentionally or inadvertently, left out of the trust during your life and is not transferred in another way. While this property will still need to go through probate, it will eventually be distributed according to your trust instructions instead of being distributed under state law provisions.