There are many important considerations while doing your estate planning.
Sometimes, it is difficult to understand the terms and language that are brought up during this time. Here is a breakdown of some of the most important aspects:
Probate is defined as the court process during which a deceased person’s assets are transferred to their beneficiaries. During that time, there is a creditors’ claim period where we publish the proceedings in the newspaper and any legitimate creditors can make a claim on the estate within a specific timeframe.
Power of Attorney defined:
A Power of Attorney is a legal document delegating authority from one person to another. In the document, the principal of the Power of Attorney grants the right to act on the principal’s behalf as their agent. A typical Power of Attorney document gives the agent the right to make health care and financial decisions for the principal.
Living Wills defined:
The Living Will is a legal document which allows a person to place into writing their specific end of life desires with regard to their health care. The purpose of this document is to provide the principal the opportunity to direct a person to speak on their behalf for the withholding of, or withdrawal, of any life prolonging procedures in the event one should have a terminal condition that is unrecoverable.
Last will and testament:
A properly executed will allows you to specify exactly how you would like your estate handled upon your death, including how and to whom property should be divided and who should manage the administration of your estate. Certain specific formalities are required for execution of a valid will. When there is a will with no revocable living trust, there will be probate of a person’s individual assets.
Revocable Living Trust:
In Florida, you can make a living trust to avoid probate. A trust document is similar to a will in that it names someone to take over as trustee after your death or disability. You must transfer ownership of your property to yourself as the trustee of the trust. Once all that’s done, the property will be controlled by the terms of the trust during your lifetime and the successor trustee will be able to assist with financial affairs. At your death, your successor trustee will be able to transfer it to the trust beneficiaries without probate court proceedings.