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FREQUENTLY ASKED QUESTIONS
ABOUT ESTATE PLANNING
What is a Will?
What is Intestacy?
How often should I update my Will?
What is a Trust?
What are Living Wills?
What is Power of Attorney?
How do I begin planning my Will?
What is a Will? A will is a legal document which helps you put your affairs in order before you die. A will names your beneficiaries and which property they will receive. A will also allows you to appoint an executor, appoint a guardian for your minor children, appoint a trustee to manage assets held for a minor child until that child reaches maturity, and provide for the payment of taxes on your estate.
What is Intestacy? Intestacy is when you die wihout a will. If you die "intestate," Pennsylvania law will govern how your estate will be distributed. This may not be the way you want your assets to be divided.
How often should I update my Will? As a general rule, you should review your will every five years. You should also review your will and consider updating it if you marry or divorce, if you have a child, if you move to another state or if the size of your estate changes for any reason (such as receiving an inheritance or a personal injury award).
What is a Trust? There are many different types of trusts. A simple trust may be designed to hold your assets until your beneficiaries reach a certain age or are free from a disability. You should carefully consider who you will name as your trustee, as that person will have control over your trust assets until the trust is terminated. Many trusts offer substantial tax savings for your estate.
What are Living Wills? A Living Will is also known as an Advance Health Care Declaration or Directive. This document allows you to state your wishes regarding whether your life should be prolonged by the use of artificial means if you are unable to express your wishes and you are terminally ill or are permanently unconscious. A Living Will instructs your doctor and other health care providers whether or not to medically prolong the process of your dying, or keep you in a state of permanent unconsciousness, with no hope of recovery. It contains specific directions describing the kinds of medical treatments and procedures you wish to have or not have. Pennsylvania law provides that your doctors must follow instructions in the Living Will if you are unable to provide instructions at the time the medical decisions need to be made.
What is a Power of Attorney? A Power of Attorney allows you to designate another person to have control over your person and your assets if you become incapacitated (temporarily or permanently, physically or mentally) for any reason. The Power of Attorney will allow your agent to file tax returns, sign checks, buy or sell real estate, pay bills, authorize your medical treatment or your admission to a nursing home, make gifts and commence or defend lawsuits on your behalf.
Most powers of attorney are durable, which means that they remain effective even if a court finds you to be incompetent, and they are recognized in all fifty states. There is also a
Limited Power of Attorney, which allows you to authorize your agent to act on your behalf for a specific event, such as attending a real estate settlement in your place when you buy or sell a home. This
limited power expires when the specific act has been accomplished.
How do I begin planning my Will? First, make a list of all your assets and how each asset is titled ( jointly with a spouse, in your name alone, etc.). Then list the beneficiary designations on all your retirement benefits and life insurance policies. Finally, choose the people you wish to name as the Executor of your estate, the Guardian of your minor children and the Trustee for any assets you wish to place in a trust until your children are older. You should also choose an alternate Executor, Trustee and Guardian. When you have this information, you are ready to make an appointment with an estate planning attorney to have your will prepared.
See also:
Divorce
Spousal Support
Equitable Distribution
Alimony
Child Custody
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