TOOLS TO PROTECT ASSETS
Lately, I have been receiving phone calls about ‘Wills and Trusts”
after COVID-19 started to dictate terms in our life. This pandemic
has made me pen down the tools of estate planning for the benefit of
readers.
In this time of distress and agony, the thought of estate planning is paramount
to avoid the unnecessary legal and emotional tug of war between our family
members after one’s death. Estate planning will help us to distribute our
assets among legal heirs and descendants in accordance with one’s wishes
legally and equitably, eliminating possible confusion.
Though one might have an idea on how to distribute his hard-earned assets,
unfortunately, it may not have been written and kept in a safe place. In turn,
it will cost time, legal fees, and unnecessary hardships. It is a fact that one
might give estate planning the least priority in his life, and the task will
always be shelved for a future date. Ultimately it may invite unwanted
bickerings and quarrels between spouse, children, and next of kins once the
person dies without proper estate planning. This is the right time to think about it since we are locked down in our comfort zones.
The tools contained in this article are, in the author’s judgment, necessary
forms which should be used to accomplish specific objectives.
Wills:
This is a revocable instrument by which a person makes disposition of
his/her property to take effect after his/her death. A Will is probably
regarded as the single most important planning document.
Trusts:
The trust device has many applications in family estate planning. Trust in
its simplest terms, is an arrangement by which legal incidents of the ownership
of property are broken up into parts, and benefits of such parts are
divided in accordance with the terms of the trust.
Medicaid Trust:
A Medicaid Asset Protection Trust is an ideal planning tool for the
purpose to protect the assets if a person later on applies for medicaid
eligibility.
Special Need Trust.
A trust for the benefit of the disabled beneficiary who seeks potential
financial aid from government
agencies.
Power in trust.
If the person reasonably anticipates that a minor will be a beneficiary
under a Will, he should create a
trust which permits an executor to hold and manage property passing to a
minor until the term of minority is ended.
Health Care Proxy/ Living Wills:
This is a document which contains a person’s instructions about health
care treatment, in the event the
person becomes incapable of making decisions.
Durable power of attorney:
This is a written authorization from a person (Principal) to another
person (agent) to perform acts on
behalf of the principal.
Caveat:
The information provided on this article does not, and is not intended to,
constitute legal advice; instead, all information, content, and materials
available on this site are for general informational
purposes only. Readers should contact their attorney to obtain advice with
respect to any particular legal matter. No reader should act or
refrain from acting on the basis of information on this site without
first seeking legal advice from counsel in the relevant jurisdiction.