the purpose of estate planning
TRANSCRIPT
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• Estate planning is one way to prepare yourself and your family for death and even for the possibility of incapacity during your lifetime.
The Purpose of Estate Planning
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
The Purpose of Estate Planning
• There are a several different options when it comes to estate planning tools.
• Which ones are best for you will depend on your unique goals for the future.
• Your Kansas estate planning attorney can help.
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
Being prepared for possible incapacity
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Being prepared for possible incapacity
• The legal definition of incapacity is the ability to comprehend the consequences of certain legal proceedings, including entering into contracts or signing legal documents.
• Incapacity could be caused by either a physical or mental condition and can be temporary or permanent.
• Now, when it comes to estate planning matters, incapacity refers to the ability of an individual to manage his or her own affairs and to make important legal decisions for themselves.
• Without an appropriate estate plan that addresses incapacity issues, you could end up being appointed a court-supervised conservator or guardian.
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Establishing how your estate will be handled after your death
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• The other purpose of estate planning is to create a plan for handling your estate after your death.
Establishing how your estate will be handled after your death
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Establishing how your estate will be handled after your death
• One of the primary estate planning instruments used to establish what to do with your assets after your death is the Last Will and Testament, or will for short.
• A will is essentially a set of written instructions on how your estate should be distributed after your death.
• A will can also provide a way for you to nominate a guardian for your children minor.
• A disadvantage of a will, however, is that your estate must go through the probate process before your assets can be distributed.
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The basic elements of an estate plan
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• A proper estate plan should do more than just tell the world who should get your property after your death. Instead, a comprehensive estate plan may also include the following:
The basic elements of an estate plan
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
The basic elements of an estate plan
• instructions for your care if you become disabled or incapacitated before your death,
• the name of a guardian and manager for the inheritances of minor children,
• provisions for loved ones with special needs,
• provisions for loved ones who may need financial assistance or asset protection
• life insurance policies for your surviving family,
• disability income insurance if you become unable to work, and
• long term care insurance to assist in financing your medical care in case of an extended illness or injury
11 @ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
The time to create your estate plan is now
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• The reason most clients put off estate planning is they believe they are either too young or don't have enough assets.
The time to create your estate plan is now
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
The time to create your estate plan is now
• Neither of these assumptions is true.
• First, you are never too young because, the reality is, you cannot predict how long you have.
• Nor can you be sure that an unexpected illness or injury won't leave you incapacitated.
• Because of that uncertainty, the best course is to start your estate plan sooner rather than later.
• If for nothing else, do it for your family.
• The families of people who don't have a plan, will ultimately be left to pick up the pieces without knowing where to start.
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Estate planning is not as expensive as you may think
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• For many, the idea of creating an estate plan seems far too expensive, especially for those with modest incomes.
Estate planning is not as expensive as you may think
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Estate planning is not as expensive as you may think
• What you should know is, you can always start with a simple plan initially and then update or upgrade it as your financial circumstances change.
• With a will, you have the opportunity to designate who should become guardian of your minor children, if necessary.
• It is better to have something, than nothing at all.
• Starting small is a good choice for single individuals and young families.
• Then, as your needs and the needs of your family change, you can adjust your plan accordingly.
• An experienced Kansas estate planning attorney can provide the necessary guidance and peace of mind you need.
17 @ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
Most common instruments used for incapacity planning
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
• Two of the most common instruments used when planning for incapacity are Health Care Powers of Attorney and Financial Powers of Attorney.
Most common instruments used for incapacity planning
@ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential
@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential
Most common instruments used for incapacity planning
• The Health Care Power of Attorney allows you to appoint a representative who will have the authority to make decisions regarding medical care and treatment for you when you can't.
• Health Care Powers of Attorney are usually drafted so that they take effect even in cases of temporary incapacity.
• On the other hand, a Financial Power of Attorney does pretty much the same thing, except the person you select will have the ability to manage your financial affairs.
• The next step is speaking with an elder law attorney to discuss the necessary components of the plan.
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If you have questions regarding trusts, or any other estate planning matters, contact Gaughan & Connealy for a consultation by calling us at (913) 262-2000.