10 Things Estate Planning Can Do for You
The first step in planning your estate is identifying your major objectives. Here are some typical objectives, preliminary suggestions on meeting them, and the chapters in this book that discuss these options in more detail.
1. Provide for your immediate family. Couples want to provide enough money for the surviving spouse. They often choose to provide this income through life insurance, particularly for spouses who don't work outside of the home. Couples with children want to assure their education and upbringing. If you have children under 18, both you and your spouse should have a will nominating personal guardians for the children, in case you both should die before they grow up. Otherwise, a court will decide without your input where your kids will live and who will make important decisions about their money, education, and way of life. (See chapter 6.)
2. Provide for other relatives who need help and guidance. Do you have family members whose lives might become more difficult without you, such as an elderly parent or disabled child, or a grandchild whose education you want to assure? You could establish a special trust fund for family members who need support that you won't be there to provide. (See chapter 4.)
3. Get your property to beneficiaries quickly. You want your beneficiaries to receive promptly the property you've left them. Options include avoiding or greatly easing probate through insurance paid directly to beneficiaries, joint tenancy, a living trust or other means (chapters 2 and 5); using simplified or expedited probate available in all states, though sometimes only for very small estates or if all beneficiaries agree (see chapter 11); and taking advantage of laws in certain states that provide partial payments to beneficiaries while a will is in probate (chapter 11).
4. Plan for incapacity. During estate planning, most people these days also plan for possible mental or physical incapacity. This planning is especially important for single people. Living wills and durable health-care powers of attorney enable you to decide in advance about life support and pick someone to make decisions for you about medical treatment (see chapter 12). Florida and a number of other states now permit you to designate a personal guardian. In addition, disability insurance can protect you and your family if you should become disabled and unable to work.
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ABA Guide to Wills and Estates
Copyright 1999, 2000, 2002 American Bar Association
