Sunday, June 7, 2009

Explanation of Wills and Trusts Package

Attorney and Counselor of Law


Hiring our law firm will be your first step towards successfully planning to protect your loved ones during your lifetime and beyond. Your package will include several important legal documents that will assist you in accomplishing your ideal giving situation. These documents are a revocable living trust, durable power of attorney for property, durable power of attorney for healthcare, and a pour-over will. Below is an explanation of what each document protects and how it will be utilized during your estate planning process.

Revocable Living Trust: You are a trustor (person who grants or bequests property interests), who will hold legal title to all bequeathed interests for the benefits of those you name (beneficiaries) to receive your bequest. The trustor creates his/her intent to pass his/her property interests (bequests) through this document (trust). The trustor shall name a person to manage the trust once he/she is deceased this person is called a trustee. A revocable trust is a right reserved by the trustor to change, terminate and recover any property interests that have been included in the trust document(s) without upsetting any loved ones or involving a long court process.

Durable Power of Attorney for Property: A power permitted by the trustor that authorizes an agent (whom ever the trustor names) to transact business for the trustor. This authorization would only become effective upon the trustor’s incapacitation or incompetence. The power would consist of making financial decisions, paying the trustor’s debts, and continuing to meet the trustor’s daily financial obligations.

Power of Attorney for Healthcare: A power permitted by the trustor that authorizes an agent (whom ever the trustor names) to transact healthcare decisions for the trustor. This authorization becomes effective upon the trustor’s disability, incapacitation, or incompetence. This kind of document would have made the Terri Schiavo situation more of a private matter between her and her loved ones and not the court system.

Pour-Over Will: This documents works like a normal will, but in this situation most of your assets of your estate are included in the trust; therefore this document will explain what happens to property that does not make it into the trust. For example, personal property such as clothing or a car may not make it into a trust. These simple personal items shall be distributed by this document (will).

Living Will: Living will usually covers specific directives as to the course of treatment that is to be taken by caregivers, or, in particular, in some cases forbidding treatment and sometimes also food and water, should the principal be unable to give informed consent ("individual health care instruction") due to incapacity. Works in combination with Power

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