the purpose of estate planning

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Page 1: The Purpose of Estate Planning
Page 2: The Purpose of Estate Planning

@ 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

Page 3: The Purpose of Estate Planning

@ 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

Page 4: The Purpose of Estate Planning

Being prepared for possible incapacity

Page 5: The Purpose of Estate Planning

@ 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.

5 @ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 6: The Purpose of Estate Planning

Establishing how your estate will be handled after your death

Page 7: The Purpose of Estate Planning

@ 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

Page 8: The Purpose of Estate Planning

@ 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.

8 @ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 9: The Purpose of Estate Planning

The basic elements of an estate plan

Page 10: The Purpose of Estate Planning

@ 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

Page 11: The Purpose of Estate Planning

@ 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

Page 12: The Purpose of Estate Planning

The time to create your estate plan is now

Page 13: The Purpose of Estate Planning

@ 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

Page 14: The Purpose of Estate Planning

@ 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.

14 @ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 15: The Purpose of Estate Planning

Estate planning is not as expensive as you may think

Page 16: The Purpose of Estate Planning

@ 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

Page 17: The Purpose of Estate Planning

@ 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

Page 18: The Purpose of Estate Planning

Most common instruments used for incapacity planning

Page 19: The Purpose of Estate 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

Page 20: The Purpose of Estate Planning

@ 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.

20 @ 2017 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 21: The Purpose of Estate Planning

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.