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FEBRUARY NEWSLETTER

WHAT IS AN ESTATE PLAN?

An Estate Plan is a set of documents that will provide for your family after your death or disability. The goal is to allow your chosen beneficiaries to receive your property in a way which maximizes the benefits to them. If you do not have your own Estate Plan, the state of Arkansas will supply one for you and designate who will receive your assets upon your death. Rarely will the state laws result in property passing in the manner which you would prefer.   Only through an Estate Plan can you name the persons you want to serve as trustee and guardian for your children.

 

 

These are some of the documents used to create an Estate Plan: 

 

 

 

 

Will. The portion of your assets controlled by your Will is called the probate estate. It consists of assets which you own at the time of your death. However the probate estate does not include assets you own with another that has a right of survivorship (such as real estate owned with your spouse) or contracts to pay you an amount (such as life insurance policies or 401K plans in which you name beneficiaries). The major reason for having a Will is so that you can designate to whom you want your probate estate assets to be distributed. The Will also allows you to be able to designate your desire on who is to be appointed guardian over your minor children. You may change your Will at any time and it takes effect only at your death.

 

Revocable Trusts. A trust is an arrangement where you transfer property to a trustee or trustees to manage for the benefit of you and your beneficiaries. This type of trust is revocable therefore it can be completely changed or terminated at anytime by the grantors of the trust before their death. In this trust you will state how you want the trust assets to be distributed to your children or beneficiaries and you can extend this distribution over time, such a certain amount received when they are 21, 25, 30 and 35.

 

Durable Power of Attorney. You may use a durable power of attorney to designate another person to manage your financial affairs during your lifetime if you are unable to do so. A durable power of attorney is valid if you become incapacitated. This document keeps the family from having to go to court to establish a guardianship for the disabled person with all of that procedure's delay, publicity and expense.

 

Power of Attorney for Health Care. This allows the identified individual to make health care decisions for you in the event you are not able to make these decisions yourself for whatever reason.

 

Living Will.  You may create a Living Will to communicate your feelings about life-sustaining treatment in the event you are in a terminal condition or permanently unconscious. Such an instrument may also designate a health care representative who is authorized to make medical decisions for you if you are unable to do so.

 

 

 

As you can see, an Estate Plan is really for anyone who wants to plan the manner in which they would like for their property to be distributed.  Hopefully, this brief overview will be of help to you.  Williams & Hutchinson will be glad to sit down with you in our offices for a free consultation to discuss your estate planning questions and needs.  Just give us a call.

 

If you would like more information regarding Estate Planning, please contact us and we can provide such information.


Sincerely,
Williams & Hutchinson

(479) 464-4944

ESTATE PLANNING
What is an Estate Plan?
Estate Plan Documents

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If you would like more information regarding Estate Planning, please contact us and we can provide such information. 

 
Sincerely,
Williams & Hutchinson
(479) 464-4944
www.wh-lawfirm.com