Planning Ahead
planning .”
Deborah Miller , JD , Director of Planned Giving i , West Virginia i i University i Foundation , Inc .
Far too many people think , “ I don ’ t have an estate . I don ’ t need to do any estate
But there are more aspects to estate planning than just signing a will . Medical , current financial and other decisions also play an important role .
The differences between the similar sounding living will and living trust often cause confusion . The first is for medical purposes ; the other is financial .
A living will provides authority for certain last medical measures when in a terminal condition and has nothing to do with transferring assets or property after death .
A living ( or revocable ) trust is a financial method that provides for the succession of ownership of trust assets much like a will does , as well as allowing control of the trust ’ s assets by a professional manager when appropriate . There are also irrevocable trusts which can provide important benefits in estate planning .
Other important estate planning documents are powers of attorney . These documents deal with the authority given to others to make medical and financial decisions under the limited conditions
stated in them .
This will assure that someone will always have the power to act on your behalf , which can prevent having to go into court to secure such authority at a crucial time .
It also pays , while you ’ re doing your estate planning , to check on the beneficiary that you have chosen for your life insurance proceeds and retirement funds . Neither will be controlled by your will unless your estate is the beneficiary , which is not always the most financially appropriate choice to make . For example , naming your estate as the beneficiary of your retirement funds can lead to more income taxes being owed because of the short payout period when an estate receives such funds . Extra taxes may not be what you had in mind . Something else -- while you are free to provide nothing from your estate for your children , you cannot “ cut out ” your spouse . West Virginia law allows a spouse
who has received nothing or an inadequate amount to claim a percentage of the deceased spouse ’ s estate .
The percentage the spouse receives is based on the number of years married . A maximum of 50 percent of the combined estate can be claimed by the surviving spouse who was married 15 years or more to the deceased person .
So , while a will controls major aspects of one ’ s estate , it ’ s not the only document that can protect your property and your wellbeing .
That ’ s good planning .
Learn how gifts of land can help students attend WVU
For details , contact the WVU Foundation 304-284-4000 wvuf @ wvuf . org
West Virginia Farm Bureau News 13