This tutorial aims at helping you gain a clearer understanding of estate planning.
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WHAT DOCUMENTS ARE PART OF AN ESTATE PLAN?
TRUST: Gives your assets away after your death and names someone to take care of your finances when you can no longer do it.
WILL: Gives your assets away after your death and names someone to take care of your finances after your death. This is secondary to your Trust if you have one.
FINANCIAL POWER OF ATTORNEY: Gives someone else the authority to act for you. (Not related to your health care.)
ADVANCE HEALTH CARE DIRECTIVE: Gives someone else the authority to make health care decisions for you if you can no longer do it.
DEED: Transfers real estate.
WHY WOULD I NEED ALL OF THESE DOCUMENTS?
TRUST: Governs only those assets you transfer into your Trust. Operates during your life and after your death.
WILL: Operates only after your death and governs all assets in your name alone (not in your Trust, no co-owner no beneficiary designated.
FINANCIAL POWER OF ATTORNEY: If you need someone to act on your behalf (ie: file your tax returns, apply for Medicare, or cancel your credit cards). (Not related to your health care.)
ADVANCE HEALTH CARE DIRECTIVE: Only relates to your health care and only if you cannot make decisions for yourself or if you cannot communicate your wishes.
DEED: Transfers real estate. (California Trusts Online only prepares deeds for California real estate and only to transfer it into your Trust.)
HOW DO I SIGN THESE DOCUMENTS?
TRUST: With a notary.
WILL: Two unrelated witnesses.
FINANCIAL POWER OF ATTORNEY: With a notary.
ADVANCE HEALTH CARE DIRECTIVE: With a notary.
DEED: With a notary.
Want to know more? Keep reading for more detailed information about estate planning.