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What is an estate
plan and do I need one?
What is a will?
Do I really need a will?
What estate planning documents do most
people need?
What is the role of an executor?
How often should I update my will or
estate plan?
What is an estate plan and do I need one?
An
estate plan is a "plan" to handle your
assets if you become incapacitated, and to distribute
your assets at your death. A plan can be very simple,
e.g., a will, or involve one or more trusts and
related documents. Most people do need an estate plan.
If you do need one, the type of estate plan you need
depends on your assets and your ideas about whom
should receive your assets at your death.
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What is a
will?
A will is the legal statement of a person's last
wishes as to the disposition of his or her property
after death. It instructs the probate court how to
distribute your assets after all debts, taxes and
costs of administration are paid.
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Do I really need a will?
A will is a good idea for just about everyone. A
will is a document in which a person declares what he
wants done with his property at the time of his death.
A will has no effect until the person who wrote it,
known as the testator, dies. The testator can also
revoke a will at any time before his death. If you die
without a will, the state will distribute your
property to your heirs according to the state's
intestacy statutes.
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What estate planning documents
do most people need?
Medical Power of Attorney: This
names a person to make medical decisions on your
behalf if you are unable to do so. You can also
authorize this person to discontinue (or not start)
life support-like procedures, if you are terminally
ill.
Durable Power of Attorney for Assets: This
document enables the person named to deal with any if
your property, as you would, during your lifetime.
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What is the role of an executor?
The executor has three
main jobs:
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Gather together the assets of the
estate;
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Pay all the valid outstanding debts of the
estate; and
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See that the estate is distributed in
accordance with the terms of the will.
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How often
should I update my will or estate plan?
It is a good
idea to update your will and/or estate plan every few
years or after the occurrence of significant life
events such as marriage, divorce, the birth of a
child, or adoption. Even if you haven't experienced
any of these events since you last updated, there may
have been changes in tax laws or changes in your
financial situation that necessitate a reevaluation of
your estate plan.
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