Estate Planning Attorneys

 Posted on March 13, 2023 in Estate Planning

Estate planning is a crucial step to take in one's adulthood. While it is an unpleasant thought, preparing your assets for your passing or incapacity is vital. Unfortunately, many people need to be more knowledgeable and informed about the best options when it comes to estate planning. Luckily, Peace of Mind Asset Protection, LLC has experienced attorneys who are thoroughly acquainted with estate planning and are ready to help you. 

Essential Documents for Estate Planning

Estate planning consists of several vital components. A few of these components include a living trust, A Pour Over Will (formed in your trust), Financial Power of Attorney, and Healthcare Powers of Attorney. These are all essential documents in the case of any estate plan. 

1. Revocable Living Trust 

A revocable living trust is arguably the most important part of estate planning. Many may believe that a will and a trust are interchangeable; however, this is not the case. A will state where your assets will be distributed following your passing. In contrast, a revocable living trust performs the same purpose but with many more specifics to benefit you and ease the process. In a trust, one will name a trustee who will administer and monitor one’s financial assets following their death. This differs from a will as a will requires a probate court to distribute one's assets. Probate court is a lengthy and expensive process that most would rather avoid. A trust also protects your assets against creditors which does not apply to wills. By choosing a will, your loved ones may be subject to creditor claims on your assets, meaning your beneficiaries may not receive the intended amount you stated. In a trust, you can include spendthrift provisions which will protect your heirs from creditor claims. Another positive aspect of trust is the privacy it provides. A trust is private, meaning only you and your beneficiaries can access it; however, a will and your estate administrations will all be made public records. This is a significant concern for many people as privacy is an important right many would like to sustain even after passing. If privacy is a considerable concern, trust is the way to go. 

The benefits listed above are a few of many. Hiring an attorney who is well-versed in creating trusts is essential to ensure that all your assets are adequately protected and prepared for your beneficiaries. Peace of Mind Asset Protection, LLC employs attorneys with extensive experience in estate planning and the creation of trusts. Our attorneys also work in Real Estate Law, meaning they are more knowledgeable about protecting your properties than other Estate Planning attorneys.

2. Financial Power of Attorney

Another important piece of estate planning is financial power of attorney. A financial power of attorney is a legal document that grants a trusted agent the power to act on behalf of the deceased/incapacitated in financial matters. The amount of power given to the agent may be as broad or restricted as the principal agent desires. For example, if the principal agent wants their agent to fulfill specific duties with their finances, that can be outlined in the financial power of attorney document. The document will state that the chosen agent will be able to manage all the principal's finances and property and make any financial transactions with which the principal entrusts them. 

A financial power of attorney may also be referred to as a "general power of attorney" or a "power of attorney of property”. These all serve the same purpose, a chosen agent who has authority over one’s assets following their passing or incapacity.

3. Healthcare Power of Attorney

While it is unpleasant to think about, there comes a time in all our lives when we may fall seriously ill and be incapable of making our own medical decisions. If this occurs, it is vital that someone you trust has the authority to make your medical decisions for you and will act in your best interest. Through a power of attorney for healthcare, you can choose an agent who will legally be entrusted with the authority to make healthcare decisions for you in the case of your incapacity. 

A healthcare power of attorney is a legal document that states who you would like to make your medical decisions for you if you cannot do so yourself. The major difference between a POA for healthcare and a living will is that a POA for healthcare is applicable if you are temporarily unconscious, in a vegetative state, or terminally ill. A living will is only helpful if you are terminally ill. People often choose to have a separate living will that may help guide your healthcare agent; however, it is important also to include a healthcare power of attorney as it provides further restrictions and guidelines for your agent. A healthcare power of attorney may be as broad or restrictive as you like. For example: If your agent must decide to put you on life support or not, they must refer to your healthcare power of attorney, where you may explicitly state whether you would or would not like to be placed on life support. You may also choose not to specify whether you would or would not like to be placed on life support and allow your agent to decide on their own.  

Peace of Mind Asset Protection, LLC has thorough experience in Trusts, Power of Attorney for Healthcare, and Property. Consulting and creating these documents are crucial when it comes to estate planning and are an intelligent way to ensure that your assets are protected and distributed correctly and that your healthcare and financial decisions will be made by someone you trust. 

Funding of the Trust

A crucial step to creating a trust is funding it. Funding a trust is transferring your assets to your trust (or changing the title of your assets). This means that after creating your trust, your assets will be under your trust’s name rather than your name. This is important as you will likely only avoid probate court if you change your asset's titles. 

Most of your assets should be under your trust. This includes but is not limited to Real estate, bank and investment accounts, business interests, and notes payable to you. 

Only some of your assets, such as retirement plans or IRAs, may be eligible to be transferred to your trust. While retirement plans cannot be transferred to your trust while you are living, you can change the beneficiary designation for your IRA to your trust as the primary or contingent beneficiary. By doing this, you may receive retirement benefits after your passing. In addition, some assets should not be transferred to your trust. For example, any motor vehicle you own should remain under your name. This is because transferring it to your trust may cause issues with your insurance premiums and coverage. 

Estate Planning Attorneys in Somonauk

Estate planning is a challenging, tedious, and detailed process. Therefore, you must hire an attorney you know you can trust to help you through the estate planning process smoothly and in your best interests. At Peace of Mind Asset Protection, LLC, our attorneys know the estate planning process through and through and will work with you to create a quality estate plan that will ensure a smooth transition for your loved ones and assurance that your assets are in the right hands. So, if you want to start your estate planning process, please get in touch with us at 630-882-2467.