Wills, Estates & Trusts
Essential estate planning concepts including wills, trusts, probate, and end-of-life documents. For educational purposes only — always consult a qualified estate planning attorney.
A legal document that expresses a person's wishes regarding distribution of their estate after death.
- •Must be of legal age (18+) and of sound mind (testamentary capacity)
- •Signed in front of witnesses (typically 2)
- •Appoint an executor to administer the estate
- •Can be revoked or amended (codicil) at any time
- •Goes through probate court process
A trust created during a person's lifetime that can be altered or revoked, avoiding probate.
- •Assets transferred to trust avoid probate
- •Grantor retains control during lifetime
- •Successor trustee manages assets upon incapacity or death
- •Provides privacy (not public record like a will)
- •Does not provide asset protection from creditors
A trust that generally cannot be modified once established, offering asset protection and tax benefits.
- •Removes assets from grantor's taxable estate
- •Provides creditor protection
- •Common types: Special Needs Trust, Charitable Trust, ILIT
- •Medicaid planning tool
- •Grantor gives up control of assets
The legal process by which a deceased person's estate is administered under court supervision.
- •Filing the will with the probate court
- •Appointment of executor/personal representative
- •Inventory and appraisal of estate assets
- •Payment of debts, taxes, and expenses
- •Distribution of remaining assets to beneficiaries
A legal document granting someone authority to act on your behalf for financial or legal matters.
- •Durable POA remains effective if principal becomes incapacitated
- •Springing POA activates only upon incapacity
- •Limited POA for specific transactions
- •Agent (attorney-in-fact) has fiduciary duty
- •Revocable at any time while principal has capacity
Documents that express your medical care wishes if you become unable to communicate.
- •Living Will — specifies end-of-life care preferences
- •Healthcare Proxy / Medical POA — appoints a healthcare agent
- •Do Not Resuscitate (DNR) order
- •POLST (Physician Orders for Life-Sustaining Treatment)
- •HIPAA authorization for medical records access
Federal and state taxes that may apply to the transfer of a deceased person's estate.
- •Federal estate tax exemption (over $12M per individual as of 2023)
- •Unlimited marital deduction between spouses
- •Stepped-up basis for inherited assets
- •State estate taxes vary widely
- •Gift tax annual exclusion ($18,000 per recipient in 2024)
Assets that pass outside of a will directly to named beneficiaries upon death.
- •Life insurance policies
- •Retirement accounts (IRA, 401k)
- •Payable-on-death (POD) bank accounts
- •Transfer-on-death (TOD) brokerage accounts
- •Supersede instructions in a will — must be kept current