What is Estate Planning

Estate Planning is the process of making arrangements ahead of time to ensure that 1) if you become unable to make financial or medical decisions for yourself because of some incapacity, someone you trust is legally authorized to make those decisions for you, and 2) at your death, the things you own will be distributed to your loved ones according to your stated wishes. The basic estate plan solves these issues using five simple documents: the Will, Durable Power of Attorney, Healthcare Proxy, HIPAA Authorization, and Living Will.

How Does a Will Work

• The Will can state specifically who is to receive your property after your death, be it spouse or children, other important people, or charity.
• In the Will, you can name a Personal Representative (formerly known as Executor) to administer your estate after your death.
• The Will can also name a person to care for your children, if such care is necessary because they are young or disabled.
• The Will must be administered through the Probate Court. This public process can be avoided through Trust planning.

What is a Trust

The Trust can be used for virtually any purpose, including:

•  Avoiding probate
•  Protecting assets from divorcing spouses
•  Ensuring young beneficiaries’ inheritance is protected for them in the future by appointing someone to administer those assets for their benefit until they reach an appropriate age
• Providing protection from spendthrift beneficiaries
• Ensuring disabled beneficiaries are able to receive inheritance while also not being disqualified from any government assistance programs they may be on now or in the future
• Significantly lowering and in some cases eliminating any estate taxes due upon your death

Other Important Documents

• The Durable Power of Attorney names an Agent to administer your financial affairs while you are living but unable to make these decisions for yourself.
• The Healthcare Proxy names and Agent to make healthcare decisions for you while you are living but unable to make such decisions for yourself.
• The HIPAA authorization names specific people who are allowed to talk to your healthcare providers about your care while you are living. These people are not authorized to make any healthcare decisions for you.
• The Living Will states specifically what type of care you would want in any number of healthcare situations and can be used by your healthcare agent to make the appropriate decisions for your care.

Take the First Step Toward a Secure Future with Partners You Can Trust

When it comes to planning for your future, experience matters. Kalmansson & Kalmansson brings over 35 years of legal expertise to the table, ensuring your estate plan is tailored specifically to meet your unique situation. Your peace of mind is our priority, and we are committed to providing the highest quality of planning and care for you and your family.