Today we’ll be talking about your Estate. That is what happens to you and your stuff when you die. Estate Planning plans for what happens to you when you are very sick, and your stuff when you die. At the top of the list is to put, in writing, what kind of end of life medical care you do or don’t want and who you want to make health care decisions for you if you can’t. This is an Advanced Medical Directive for Healthcare, also know as a Living Will. These forms are usually state specific. A good place to start is ask your healthcare provider or search online for your state government resources. My local hospital had the forms printed out, answered questions, and even notarized it for me. Military OneSource has a pamphlet available on line called Making Your Health Care Wishes Known Through an Advance Directive: A Guide for Active Military and Their Beneficiaries This is a great place to start for our military. It gives a great overview and points servicemembers to your supporting military Legal Assistance Office.
The next estate task is to name beneficiaries on your various financial accounts. This includes life insurance, bank accounts, and retirement accounts like an IRA, 401k and the Thrift Savings Plan (TSP). When you die, they will pretty quickly pay the beneficiaries you named, giving them much needed cash as soon as possible. These accounts don’t go through probate. Probate is the legal process done through the courts verifying that your will is legal and your intentions are carried out. Probate is also public, it takes time, and it costs money.
Another way for some of your assets to bypass probate and go directly to who you designate is by titling. You’re probably familiar with the title for your car. After you buy your car, you take the title the seller signed to the DMV to get plates and a new title in your name. Or in the name of you and someone else, usually a spouse. Two types of shared ownership which are called Joint Tenancy with a Right of Survivorship and Tenancy In Entirety pass directly to the surviving co-owner with out going through probate. These types of title are common for spouses who own property together like a house or a car. Using a title with survivorship rights means that person will get your share directly without the time, cost, and publicity of probate.
Probate will also occur when there you die without a will, this is called dying intestate. Without a will the probate court must decide how to distribute the assets of your estate to your loved ones, and anyone else who might try to lay claim to your stuff. So the next important estate tip to consider is have a will. If your single, no kids, not much stuff, it might not matter to you much. Have more assets? Married? Kids? You should have a will. A will tells the court where you want your assets that pass through probate to go. It’s also where you would tell the court who you would like to act as a guardian for under age children and provide funds to support them. Our military can get a will free from JAG legal services. Not sure where you supporting facility is, check at Military OneSource online. For you civilians, some workplaces offer legal services as a benefit, so that may be a resource. For very simple wills, you might consider an online will preparation service like Legal Zoom , Trust and Will or NOLO. Just be aware that these sites don’t actually provide legal advice. If you want to set up a trust to take care of minor children, have a blended family, want to disinherit an estranged family member, or have a life partner you aren’t married to, it is probably best to hire an actual lawyer to draft your will.
