FAQs

What is an Estate Plan?
An estate plan is a series of documents and directives that addresses how your affairs and medical decisions will be made if you become incapacitated, as well as how your property will be distributed upon your death. It takes into account a range of decisions, including who will care for your minor children, who will manage their finances until they are able to, how your assets will pass to your beneficiaries, how to minimize estate taxes and many other considerations.

What is a Will?
A Will is the foundation of an estate plan. It specifies how your assets should be divided among your beneficiaries. You can give set items, or amounts of money, or even percentages of your estate. You are limited only by your imagination.

What happens if I don't have a Will?
Each state has statutes to address how property will pass to beneficiaries if the deceased did not leave a Will. The statutes do not take into account the individual circumstances or needs of your family that you do. Therefore, it is important to have a Will in place, so that you are in control of your estate even after you are gone.

What is a Trust?
A Trust is an arrangement under which property is managed for a beneficiary or beneficiaries until a certain condition is met. A Testamentary Trust is a Trust that is included in a Will, and often provides someone to manage assets for minor children until they are mature enough to do it themselves. A Revocable Trust can be set up during your lifetime to hold your assets and avoid probate at death. Trusts can also be used to help lower estate taxes.

What is a Financial Power of Attorney?
A Financial Power of Attorney (FPOA) is a person or persons you designate to manage your financial affairs if you are incapacitated. Under the FPOA, you give your agent the power to manage all your financial needs, from handling your bank accounts to real estate to paying your taxes.

What is a Medical Power of Attorney?
A Medical Power of Attorney (MedPOA) is similar to a FPOA. In the event that you are incapacitated, you appoint an agent or agents to make medical decisions for you. You can tailor the MedPOA to meet specific medical, personal and religious needs as you see fit. Because these decisions can be difficult, you need to choose someone who will have the ability to make hard decisions and be comfortable with them.

This information was taken from an article on Estate Planning written by Susan A. Stearns, which originally appeared in Woodman Magazine in 1998.

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation.

Copyright © 2002 by Susan A. Stearns. All rights reserved. You may reproduce materials available at this site for your own personal use and for non-commercial distribution. All copies must include this copyright statement.