1. Revocable Living Trust
A living trust, (also known as an inter vivos trust), is a document executed by
you whereby you create an entity, (the trust), which is controlled and managed
by a trustee named by you. Often you are your own trustee. You transfer to the
trustee most or all the property you own and instruct the trustee on how to
manage the trust property. Typically, you would instruct the trustee to support
you. You instruct the successor trustee (the trustee you named to take over after
you), to terminate the trust on your death and distribute the property to your
beneficiaries. In this typical situation, you are the “Settlor” (the person who
created the trust), the “Trustee” (the person who manages the trust), and the
“Beneficiary” (the person who benefits from the trust). The persons or entities
identified by you to receive the estate upon your death are also beneficiaries, but
their interests are contingent and can be altered or cancelled by you by a simple
amendment to the trust. In this regard the trust is a substitute for a will.
A living trust can be revoked or amended by you at any time during your
lifetime. After your death it becomes irrevocable. The terms of the trust can be
tailored to your particular wishes.
2. Certification Of Trust
A shortened version of a living trust document, leaving
out certain details (what is in the trust, the beneficiaries'
identity, etc.). This is often used to provide proof that a
trust has been established to a financial organization or
other institutions, without revealing specifics that you
want to keep private.
3. Pour-over Will
A pour-over will adds a degree of safety and peace of mind to an
individual's estate planning.
Usually, creating a living trust means that you give most of your
property to the living trust during your lifetime. Therefore, when
you die there will not usually be much property to be disposed of by
your will. A pour-over will, however, is still necessary to dispose of
property that you have not transferred to your living trust before
your death, such as your personal effects, gifts you have recently
received, furniture, or proceeds from the previous day's winning
lottery ticket. By doing so, the individual ensures that his or her
estate is to pass to the living trust, which will ensure that the terms
of the living trust will control the distribution of as much of your
property as possible.
4. Advanced Healthcare Directive
An "advanced health care directive" is a document where
one personal appoints another to make health care decisions
for them in the event they are unable to make those
decisions on their own.
An advanced health care directive also lets your
physician, family and friends know your health care
preferences, including the types of special treatment you
want or don't want at the end of life, your desire for
diagnostic testing, surgical procedures, cardiopulmonary
resuscitation and organ donation, and preferences for burial
or cremation.
5. Durable Power Of Attorney For
Finance
A durable power of attorney is a document that allows
you (the principal) to give authority to another person
(your agent or attorney-in-fact) to make financial/legal
decisions and handle financial transactions on your
behalf. It is called “durable” when, by its terms, it remains
effective even if the principle becomes mentally
incompetent.
