When you think of an estate plan, you usually think about where your assets are going to go after you die and who will take of your kids (if any) while they are still young. A comprehensive estate plan will outline not only what will happen after death, but what happens if you become incapacitated. An estate plan is a series of documents that will, ideally, work together to make sure that your wishes are carried out and ease the burden on your survivors when handling your affairs.
WILL
A Will is the only document where you can name a guardian of your minor children. You also name an Executor, who will administer your estate. The Will also directs where your assets that are subject to probate (that is, titled in your sole name at your death) will pass. In estate plans that include a Revocable Trust, a “pour over will” is utilized and the Revocable Trust is the recipient of probate assets.
REVOCABLE TRUST
A Revocable Trust allows your survivors to avoid the probate process, which can be costly, time-consuming and open to the public. Using a Revocable Trust also ensures that your assets will be used for the benefit of your children or other beneficiaries and rather than have your assets distributed directly to your children at too early an age.
Certain types of Revocable Trusts also permit married couples with significant wealth to minimize or eliminate federal, and if applicable, state, estate taxes.
A Revocable Trust is an important piece of a business owner’s estate plan. You can preserve and protect your business interests in the event of your incapacity or death by giving the Trustee authority to operate your business with limited interruption.
DURABLE GENERAL POWER OF ATTORNEY
A Durable General Power of Attorney allows you to name someone to handle your financial affairs in the event of incapacity without having to go through a guardianship proceeding in Probate Court.
NEW HAMPSHIRE ADVANCE DIRECTIVE
New Hampshire Advance Directives contain two sections: a Durable Power of Attorney for Health Care and a Living Will. The Durable Power of Attorney for Health Care is designed to allow you to names the person you choose to make medical decisions for you if you become unable to do so for yourself, whether temporarily or permanently. The Living Will states that you wish to have artificial life-sustaining procedures withdrawn under certain circumstances.
