What Is Included With Our Basic Will Package, And Why Do You Need It?

Estate planning is one of those tasks that is easy to ignore. Like balancing your checkbook, going to the dentist, or cleaning out the garage, estate planning is an “I can get to that next month,” task. Sure. But after you bounce a few checks, lose your teeth, and become a hoarder, it may be too late.

The same is true for estate planning. In fact, it’s much more important. After you pass away, it’s too late to help your family with the disposition of your assets—a task that can be stressful and time-consuming.

A basic will package will serve the needs of many of you reading this. At Danilson Law, our basic will package includes a Living Will, Healthcare Power of Attorney, Last Will & Testament, and a Testamentary Trust (if you have minor children).  Additional tools to consider in a complete estate plan may be a durable power of attorney for all matters and/or a revocable trust.

Let’s look at the benefits of each one of these components of the basic will package. 

Last Will & Testament 

A last will and testament is the document that details an individual’s (the “testator’s) final wishes concerning his assets and possessions. A will instructs the executor on how to dispose of or distribute the testator’s property after he passes away.

A will is also where the testator can designate a guardian for any minor children.

It’s important to understand that when an individual passes away without a valid will, he dies intestate. This means that the state is in charge of the person’s estate, and a probate judge will appoint an executor for the estate. The judge can name whomever she sees fit, whether that’s an adult child of the deceased or a local attorney—neither of whom may be the person the deceased would have wanted handling his affairs at death. In addition, when there is no will, state intestacy law dictates how the estate will be distributed.  In theory, a blood relative whom you haven’t seen since you were six years old could receive a distribution of your assets.

So, you can see the importance of a Last Will & Testament. But again, this only forms the foundation of a thorough estate plan. It’s just one component of a complete will package.

Living Will

This legal document gives healthcare professionals an individuals’ preferences for end-of-life medical treatments, along with other medical decisions, like pain management and organ donation.  This can be as simple as a “Declaration Relating to Life-Sustaining Procedures” where you may inform that you do not wish to indefinitely receive medical treatment that simply prolongs the dying process.  This can be more specific in that you select those treatments you do/ do not wish to receive in certain circumstances.

Some of the life-sustaining procedures to be considered are cardiopulmonary resuscitation (CPR), mechanical ventilation, feeding tubes, and medications to treat an infection. Another topic is palliative care which can keep you comfortable and manage pain. Again, this document can eliminate guesswork and confusion for a family in a very stressful time.

Healthcare Power of Attorney

In this critical document, you designate an individual whom you trust to make decisions for you in the event you’re unable to do so. Also known as a durable power of attorney for health care or a health care proxy, a healthcare power of attorney allows someone else to make important decisions when you’re incapacitated.

It’s not uncommon for a family to have disagreements about a loved one’s care. While everyone may think they know what’s best and what the incapacitated individual would want, without a healthcare power of attorney, no one can know for sure…potentially creating a conflict within the family. This issue can be avoided with a well-crafted healthcare power of attorney that outlines exactly who has the authority and who can be trusted to make decisions that are consistent with your wishes and values on your behalf.

You can designate your spouse; an adult child; an adult niece, nephew, or another family member; a trusted friend; or your minister, rabbi, or other faith community leader. You should also select an alternate in the event that the person you named is unwilling or unable to fulfill the role.

Testamentary Trust

As part of a person’s last will and testament, a testamentary trust is a trust that is established in accordance with the will’s directions. This trust becomes effective when the testator passes away. 

A testamentary trust typically has three parties: the grantor or trustor who creates the trust, the trustee who is tasked with managing the trust assets, and the beneficiaries named in the will.

The trustee is designated to be responsible for managing and distributing the trust assets to the beneficiaries of the trust according to the directions described in the will. Frequently, grantors with minor children will instruct the trustee to distribute the assets to a child of the deceased for educational expenses, to purchase a first home, or when the child reaches age 21, for example.

Takeaway

With thorough planning and the help of an experienced estate planning attorney, you can avoid confusion or disagreement about your wishes for medical care and end-of-life preferences if you can’t communicate them for yourself, and your choices for the disposition of your assets and property when you die. 

Our basic will package contains the most important documents every person should have in place. Don’t put it off until next month. Contact Danilson Law today.