ESTATE PLANNING

There are many ways to transfer your property to your family and loved ones, both during your lifetime and at your death. Balisle & Roberson, S.C. can help you select methods of transfer that will minimize tax liability and bureaucratic hassle, and ensure that your wishes are carried out at your death. Effective estate planning can also help you make sure that your children are provided for in the event of your death or incapacity, and that the people you love have the right to make decisions about your medical care.

Wills. A will allows you to direct the distribution of the property in your probate estate to those you wish to receive it. It allows you to choose who will be responsible for distributing your property. It allows you to name someone to care for your minor children and dependents. It allows you to give your beneficiaries their property in the form of a trust. A will can ensure that your important possessions and assets go to your chosen family at your death, rather than being distributed according to intestate law. For divorcing spouses, a new will may be a critical part of making sure that your assets do not go to a former spouse at your death.

Trusts. A trust permits you to control the management and distribution of your assets. If you have young or young adult children, or if you need to provide for a disabled family member, a trust may be useful. For married people with large estates, a trust may help to avoid some estate taxes. A “testamentary” trust is a trust that is included in your will. A “living” or “inter vivos” trust can be effective during your lifetime or you can wait to fund it at the time of death. Educational trusts can help you set aside assets to help a child, grandchild, or other loved one pursue higher education or private schooling. You can establish specific conditions the trust beneficiary must meet to qualify for trust distributions, and you can provide for your beneficiary’s educational needs both during your lifetime and after your death. A special needs trust can help you provide financial security and asset protection for a loved one who is severely disabled or otherwise incapacitated.

Marital Property Agreements. Sometimes called a “pre-nup,” a Marital Property Agreement is a useful tool for agreeing on how you and your spouse want to think about your financial affairs both at death and in the event of a divorce. There are actually two kinds of Marital Property Agreements. One is an estate planning tool that is usually drafted and signed along with wills for each spouse, and does not contain divorce provisions. It classifies all assets owned by either spouse as marital or individual assets so that, when one spouse dies, the other can avoid a long and complicated probate process determining the classification of the deceased spouse’s assets. One attorney can represent both spouses in preparing this type of agreement. The other kind of Marital Property Agreement is designed to plan ahead for either divorce or the death of one spouse. Because this type of agreement contains divorce provisions, each spouse must have separate legal counsel. Marital Property Agreements with divorce provisions can be useful if either spouse enters the marriage with significant individual assets or with obligations to provide for children from a prior relationship.

Durable financial and health care powers of attorney. A durable financial power of attorney allows you to designate an agent to manage your financial affairs should you become incapacitated or seriously disabled. A health care power of attorney permits you to designate an agent to make health care decisions on your behalf should you become incapacitated or seriously disabled. Both kinds of powers of attorney are limited to the specific powers and your intentions as expressed in the powers of attorney – in other words, your agent cannot act unilaterally or contrary to your wishes. Both kinds of powers of attorney are critical for anyone in a committed, non-marital relationship who wants his or her partner to have the right to make important health care and financial decisions.

Cohabitation agreements. A cohabitation agreement can help you clarify your wishes and plan your shared financial future if you live with your partner but are not married to him or her. Cohabitation agreements can accomplish for same-sex and unmarried couples some of the goals of a marital property agreement.