What You Need and Why You Need It

Alan L. Augulis Estate Planning Attorney

www.AugulisLawFirm.com

Studies are conducted periodically that attempt to get a

grasp on the estate planning preparedness of people

throughout the United States. They consistently find that a

majority of adults have not made all the necessary

preparations for the future.

In this paper we would like to examine the estate planning

tools that are widely utilized and briefly explain why they are

necessary.

Estate planning involves arranging for the transfer of your

financial assets to your heirs after you pass away. This is not

the only thing to consider, but it is the facet that people

generally think of first.

A very common vehicle of asset transfer is the last will. Most

people are well aware of the existence of this estate planning

device.

With a will you can direct future asset transfers. However, it

can contain some additional elements.

Someone must handle the tasks involved in the

administration of the estate after you pass away. This

individual is known as the executor of the estate.

When you are drawing up your will you should include the

choice of an executor. It is important to understand the fact

that this individual will have some very tangible business

oriented tasks to complete.

These would include the payment of final taxes, getting

appraisals on property, liquidating certain property, and

otherwise preparing the assets that comprise the estate for

distribution to the heirs.

Last Wills

● ● ●

Studies show that a

majority of adults have not

made all the necessary

preparations for the future.

● ● ●

● ● ●

Estate planning involves

arranging for the transfer

of your financial assets to

your heirs after you pass

away. This is not the only

thing to consider, but it is

the facet that people

generally think of first.

● ● ●

Because of the above you should choose someone who has a

good bit of business acumen. This individual should also have

the available time that it will take to complete all of these

tasks.

If you are the parent of minor children you should nominate

a potential guardian for your children when you are creating

your last will.

You don't have to use a last will to direct the transfer of your

assets. There are a number of other possible choices, and

one of them is the revocable living trust.

If you create one of these trusts you are known as the

grantor. The grantor of the trust may also serve as the initial

trustee and beneficiary. In this manner the grantor can retain

control of the funds throughout his or her life.

You name a successor trustee and a successor beneficiary or

beneficiaries. After your passing the trustee distributes

assets held by the trust to the beneficiary or beneficiaries.

This trustee is guided by the trust terms that you create

when you are establishing the trust.

The successor trustee could also be empowered to manage

the assets that have been conveyed into the trust in the

event of your incapacitation.

There are numerous different estate planning devices that

are a bit more advanced than wills and living trusts.

People who are exposed to the estate tax must position their

assets in a manner that provides tax efficiency. This can be

accomplished in various ways, and the ideal approach will

vary on a case-by-case basis.

Revocable Living Trust

More Advanced Estate Planning Devices

● ● ●

You don't have to use a

last will to direct the

transfer of your assets. ● ● ●

● ● ●

People who are

exposed to the estate

tax must position their

assets in a manner

that provides tax

efficiency.

● ● ●

Asset protection is another priority that some people have

when they are engaged in the process of estate planning.

There are steps that can be taken to protect assets from

creditors and litigants.

Providing for someone with special needs also requires a

somewhat advanced approach.

Thinking about the things that will take place after you pass

away is certainly part of the equation. However, the period

of time immediately preceding your death is something to

prepare for as well.

One of the legal instruments that you should have in place is

a health care proxy. With this document you name someone

to make medical decisions in your behalf if you become

unable to make them for yourself.

Another advance directive that is recommended is a living

will. With this directive you state your preferences regarding

life-sustaining medical procedures.

As mentioned in a previous section, if you have a revocable

living trust your successor trustee can be empowered to

handle your financial affairs in the event of your

incapacitation.

If you do not have a trust you can appoint a financial decision

maker through the execution of a durable power of attorney.

Because the power of attorney is durable it stays in effect

after your incapacitation.

A power of attorney without this designation would no

longer be in effect upon the incapacitation of the grantor.

Advance Directives for Health Care

Financial Decision Making

Another option would be a springing durable power of

attorney. These powers will only take effect in the event of

the incapacitation of the grantor.

The potential problem with these is that it can sometimes be

difficult to prove that the grantor is in fact incapacitated.

Estate planning is a basic responsibility that every self-

supporting adults should take seriously.

Making the appropriate preparations for the inevitable may

seem like something that is only relevant to senior citizens.

However, people die every day in accidents. Other younger

adults succumb to catastrophic illnesses.

If you are the parent of a minor child an estate plan is an

absolute must.

Many people recognize the fact that they should have a plan

in place but they don't know what they should do first. The

logical solution would be to consult with a licensed estate

planning attorney.

Your attorney will ask you all the right questions, listen as

you explain your objectives, and make the appropriate

recommendations.

Forbes

http://www.forbes.com/sites/janetnovack/2012/10/14/the-

forbes-guide-to-estate-planning/

State of New Jersey

http://www.state.nj.us/health/advancedirective/

15 Common Reasons To Do Estate Planning

What is Estate Planning? And What Can an Estate Plan Do

for You and Your Family?

Free, No-Obligation Estate Planning Report. Download

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A good estate attorney will get to know your financial situation and your Estate Planning goals, and put together a plan just for

you. What’s more, an estate attorney can help make sure

your Estate Plan will work when it’s needed and when you have a

lasting relationship with an estate attorney, it’s easier to keep your Estate Plan up-to-

date.

Find out more about Estate Planning and learn how to

choose an estate attorney – click the image to download your free

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Augulis Law Firm 5 Mountain Blvd., Suite 5

Warren, NJ 07059 (908) 222-8803

www.augulislawfirm.com

Conclusion

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