Estate Planing Basics

This Article is intended only as a brief overview of 3 important Legal Estate Planning documents. The information provided is not intended to serve as a substitute for the Professional Services an attorney at law would normally provide to a client in a personal one-on-one setting, including up to the minute legal research

 The three estate planning documents we will briefly discuss are

  • LAST WILL & TESTAMENT
  • LIVING WILL
  • POWER OF ATTORNEY

What is the purpose of Estate Planning.

Process of arranging one’s affairs to pass property to heirs with the least amount of aggravation, stress, and tax consequences.

Last Will and Testament

 Your last will and Testament is the cornerstone document of any estate plan. Everybody owns something whether it is real (house or land), or personal property. It is the owner’s privilege to select whom this property shall go to.

When an individual drafts a will it accomplishes several tasks in the eyes of the law.

  • Disposes of a decedents property that is not otherwise disposed of by the operation of law
  • Appoints a Fiduciary- a fiduciary is an individual called upon to assist in carrying out the descendant’s wishes. A fiduciary can pretty much be anyone who is a competent non-minor so make sure to choose someone you trust.

Requirements for a valid will

  • General rule for a valid will is that it must be in writing, signed by the testator (person making the will) and witnessed by two individuals
  • However, New Jersey has long recognized the concept of the “Holographic” or hand written will in limited circumstances. With that being said it make’s the process easier when you have a formal will drawn up.

Revocation or alteration of a will

  • Generally speaking a will can be Revoked or altered at any time by a testator.
  • You can change your will as many times as you wish, as your assets, beneficiaries, and desires may change

Living Will or Directive for Healthcare

  • For the purpose of this discussion use the term living will.
  • Living will outlines treatment philosophy with regard to withholding or withdrawing any form of health care including life-sustaining treatment through a proxy or health care representative.

Health care Representative or Proxy

  • Any competent adult may serve as health care representative.
  • A physician may serve as proxy, only if not also serving as attending physician at the same time.

Living will Directives and Execution

  • The language of a living will can either be very specific or general in nature. It’s up to the individual to decide how much direction to give, or what circumstances are covered under a living will.
  • Living will’s can be executed at any time by a competent adult of sound mind, free or duress and undue influence.
  • The document must be signed in the presence of two witnesses or in the presence of a notary public.

Power of Attorney

 There are a number of different types of power of attorney

  • Limited
  • General
  • Springing

Unlike a will and living will, the only mandatory requirement for a power of attorney is that it is in writing. THERE CAN BE NO ORAL POWER OF ATTORNEY!

Limited Power of Attorney

  • A limited power of attorney gives only specific, limited powers to the agent.
  • Common examples of limited powers of attorney are those used for the purchase or sale or real estate.

General Power of Attorney

  • General power of attorney is as its name suggests provides a broad range of powers permitting the attorney in fact to act in place of the principal in all matters.
  • At common law a general power of attorney was deemed ineffective upon the incapacity of the principal

Springing Power of Attorney

 A springing power of attorney takes effect only upon the occurrence of a certain event- including the disability of the principal.

As a full service financial advisory firm we realize that often times individuals needs go beyond simply making investment recommendations. Flagstone retirement consultants has developed relationship’s with many professionals outside of the financial services industry. Clients of Flagstone retirement can elect to utilize these relationships and have any, or all of these documents prepared by a legal professional for a discounted rate. We do not receive any type of referral fee or compensation for this service; we just think basic estate planning is important for everyone.

To learn more about basic estate planning, or any other topic please don’t hesitate to contact the Flagstone Retirement Consultants team toll free at 866-892-2080, or fell free to E-mail us at Info@flagstoneretirement.com