Create your legacy: inheritance strategies and beyond

This is a legal document in which you appoint the executor of your estate, designate a guardian for your minor children and outline how you want to distribute your wealth.

This functions in much the same way as a will. However, a probate court must administer a will. An RLT may avoid the probate process, saving time and money. It may also offer privacy from the public proceedings of probate. You fund your RLT, maintain access to the assets, and change its terms and beneficiaries while you have capacity. The trust agreement is your road map and the trustee must follow it. The trustee is a fiduciary, entrusted with control, management and asset distribution for your named beneficiaries

If you ever become incapacitated for a period of time, it is important to have someone authorized to make financial decisions for you. A financial durable power of attorney is the legal document in which you designate your attorney-in-fact to act on non-trust assets.

With an advanced medical directive, you can plan for your medical treatment in advance of needing it. You may preauthorize specific medical procedures or appoint someone to make decisions on your behalf if you are incapable. Advance directives may include a Living Will, Healthcare Power of Attorney (e.g., Healthcare Proxy; Medical Power of Attorney) and Do Not Resuscitate (DNR) Orders.

Release of this document permits your physician to discuss the details of your medical condition with someone you designate without violating the HIPAA privacy rules. Note: your Financial POA and/or Medical Directives may already incorporate HIPAA provisions within the document.

Life insurance is often part of an estate plan, whether it is a term policy to address the needs of the surviving spouse and family, or a permanent policy used for estate liquidity or enhancement. Reevaluate the purpose for the insurance you currently have and review the type, term and amount of insurance to ensure it is appropriate. Also, review the ownership and beneficiary designations of your policies to ensure they are aligned with your overall estate plan.

Once you have met with an attorney and established an estate plan, it is important to communicate your plan with your trustee, and if appropriate, your beneficiaries. Estate documents are not substitutes for conversations about values. Your family may not need to know all the details, but a discussion can be helpful. You should also place your documents somewhere that is not only safe, but easily accessible. Share this location with your trustee and other key parties.

Although creating an estate plan may seem overwhelming, it’s essential to help ensure you and your family are well prepared.