Missouri Advanced Directives – What You Need to Know

MISSOURI ESTATE PLANNING BASICS – COMPONENTS IN AN ESTATE PLAN

Missouri Estate Planning Basics – Components in an Estate Plan www.yourestatematters.com 2

You have undoubtedly heard how important it is to create an estate plan early on in life

and update the plan as life events require. If you are finally getting around to creating

your estate plan, however, you may be a bit intimidated by the prospect of having to

figure out what should be included in your plan. Because of the unique nature of an

estate plan you should consult with an experienced Missouri estate planning attorney to

decide exactly which estate planning components would be beneficial additions to your

estate plan; however, familiarizing yourself with some of the most common additions to

an estate plan ahead of time may also make you feel more informed and better

prepared to get started creating your individual plan.

Missouri Estate Planning Basics – Components in an Estate Plan www.yourestatematters.com 3

Last Will and Testament

Your Last Will and Testament will likely

serve as the foundation of your estate plan.

Your Will allows you to do two important

things. First, you may make specific or

general gifts to beneficiaries in your Will.

Second, you may nominate a guardian for

your minor children in the event that you

die and the children’s other parent is unable, or unwilling, to take over their care and

maintenance.

Trust Agreements

A trust agreement allows you to place

assets into the hands of a Trustee who

will protect and grow the assets for the

benefit of a third party beneficiary.

Trusts are divided into two types –

testamentary and living. A

testamentary trust will not take effect

until your death whereas a living trust

takes effect during your lifetime. Living

trusts are further divided into

revocable and irrevocable. There are

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many specialized trusts used to accomplish specific goals, such as charitable trusts,

Medicaid trusts, and even pet trusts. You can also customize a trust to meet your

specific needs.

Incapacity Planning

Incapacity is not limited to the elderly – it can strike at any time. If it does, who will

make decisions for you and who will control your assets? Creating an incapacity plan as

part of your overall estate plan allows you to answer those questions now instead of a

court deciding the answers for you.

Advance Directives

These are documents that allow you to

make important, highly personal, end of

life decisions now to ensure that your

wishes will be followed when the time

comes. In Missouri, a Durable Power of

Attorney for Health Care Choices allows

you to name someone who will have the

authority to make heath care decisions

for you should you be unable to make them yourself at some point in the future. A

Health Care Choices Directive, commonly referred to as a “living will”, is a document

that allows you to make specific end of life decisions, such as whether or not you want

artificial nutrition to be supplied or CPR to be used on you should your heart stop.

Missouri Estate Planning Basics – Components in an Estate Plan www.yourestatematters.com 5

Medicaid Planning

The cost of long-term care in the

United States averages over

$80,000 a year, causing over half

of all seniors to turn to the

Medicaid program for help

covering those costs. Unless you

plan ahead though, you may be

forced to spend all of your hard

earned money and sell all your

non-exempt assets first before

Medicaid will start helping. By including a Medicaid planning component in your estate

plan you can protect your assets and ensure that you will qualify for Medicaid should

you need it some day.

Power of Attorney

A power of attorney allows you to give and Agent the authority to act on your behalf in

legal matters. A POA can be general, giving the Agent almost unfettered authority, or

limited, giving the Agent only that power enumerated in the POA document. Married

couples, for example, often give each other general POA; however, care must be taken

when you give someone general POA because they will essentially have access to all

your assets.

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Co-Ownership

Titling property jointly can avoid the need for the property to go through the lengthy

process of probate after your death; however, the proper type of joint title must be

used. For real property, for example, the property must be titled as joint with “rights of

survivorship” for your interest to pass directly to the co-owner(s) upon your death.

Payable on Death and Transfer of Death Accounts

This is an account designation that allows the assets held in the account to transfer

immediately, and outside of probate, to the designated beneficiary upon your death. A

bank account, for example, that is a POD account will immediately become the property

of your listed beneficiary when

you die. Unlike joint accounts,

however, the beneficiary has

no ownership interest in the

account while you are alive.

Life Insurance

Life insurance proceeds are not

part of your estate for purposes

of probate, meaning the

proceeds of the policy will be paid to the designated beneficiary immediately following

your death. This can help create estate liquidity and ensure that loved ones have

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immediate access to cash. Life insurance proceeds can also be used to fund a funeral

trust, thereby avoiding the need for loved ones to find the funds to cover funeral and

burial expenses.

Funeral Planning

Pre-planning your funeral and burial not only makes it easier on loved ones who will be

grieving your death, but it also ensures that everything will be done according to your

wishes. There are several ways to accomplish this, with a funeral trust being the most

dependable and secure method. Because the terms of the trust must, by law, be

followed by the Trustee you can rest assured that your final wishes will be honored. In

addition, a funeral trust can easily be used to fund the funeral and burial, eliminating

the risk involved in pre-paying a specific funeral home.

Letter of Instruction

A Letter of Instruction is not a legally binding document. Nevertheless, it is commonly

included in an estate plan because it allows you to include everything from practical

instructions (where the key to the vacation house is) to emotional explanations (why

you left a larger share of your estate to your youngest child).

Now that you have a better understanding of many of the most common components in

an estate plan you should feel better about getting started with your Missouri estate

planning attorney on your own individual estate plan.

Missouri Estate Planning Basics – Components in an Estate Plan www.yourestatematters.com 8

CNN Money, Get Ahead of Your Estate Planning

Investopedia, 6 Estate Planning Must-Haves

Bankrate, Estate Planning for Everyone

Missouri Bar, Durable Power of Attorney for Health Care and Health Care Directive

Missouri Estate Planning Basics – Components in an Estate Plan www.yourestatematters.com 9

Estate Planning and Elder Law Attorneys in St. Louis, MO St. Louis Estate Planning Attorneys: Planning for Your Future Today

Missouri Estate Planning attorneys Amen, Gantner & Capriano, Your Estate

Matters, L.L.C. are here to help you with legal issues regarding St. Louis Elder

Law, Veterans Aid and Assistance, Probate, Wills, Trusts, Trust Administration,

Powers of Attorney, Health Care Directives, LGBT, and all things required to

establish a proper estate plan for the future of both you and your loved ones.

Our law firm understands the varying dynamics of modern families and seeks to

address these issues in the estate plan so your estate is distributed only to those

who you request, instead of those who may be otherwise legally obliged to it.

Estate planning can be a big project that requires consistent maintenance;

however, our professional Estate Planning attorneys can organize all of the legal

paperwork and logistics for you, while offering helpful legal advice along the

way.

Amen, Gantner & Capriano, Your Estate Matters, L.L.C. 10805 Sunset Office Dr., Suite #100

St. Louis, MO 63127 Phone: (314) 966-8077

Estate Planning and Elder Law Attorneys in St. Louis, MO St. Louis Estate Planning Attorneys: Planning for Your Future Today

Missouri Estate Planning attorneys Amen, Gantner & Capriano, Your Estate Matters, L.L.C. are

here to help you with legal issues regarding St. Louis Elder Law, Veterans Aid and Assistance,

Probate, Wills, Trusts, Trust Administration, Powers of Attorney, Health Care Directives, LGBT,

and all things required to establish a proper estate plan for the future of both you and your loved

ones. Our law firm understands the varying dynamics of modern families and seeks to address

these issues in the estate plan so your estate is distributed only to those who you request, instead

of those who may be otherwise legally obliged to it. Estate planning can be a big project that

requires consistent maintenance; however, our professional Estate Planning attorneys can

organize all of the legal paperwork and logistics for you, while offering helpful legal advice along

the way.

Amen, Gantner & Capriano, Your Estate Matters, L.L.C. 10805 Sunset Office Dr., Suite #100

St. Louis, MO 63127 Phone: (314) 966-8077

www.YourEstateMatters.com