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Edwin N. McClure,
Attorney and Arkansas PBS Foundation Board President
Estate planning is a crucial part of managing your hard-earned assets and making sure your wishes are honored after you're gone. While estate planning is an uncomfortable topic for many, it is something everyone should consider. The fact of the matter is, no one lives forever, and good estate planning will put your mind at ease as you ensure that your loved ones will be taken care of.
Below are examples of important estate planning documents:
1. Last Will and Testament
Everyone has heard of this one before. It tells the court how you want your assets divided and who should manage your estate after your passing. This can include appointing an executor to oversee the distribution of assets, naming guardians for minor children and ensuring that property is passed on as you wish. It is one of the most important and simplest ways to ensure that your wishes are honored.
2. General Power of Attorney
A General Power of Attorney (POA) is a document that gives another person (the agent) the legal authority to make decisions on your behalf (the principal) if you're incapacitated. This is usually for financial or legal matters, such as managing bank accounts, signing contracts or paying bills.
3. Health Care Power of Attorney
Like the General POA, the Health Care Power of Attorney allows someone to make medical decisions for you if you are unable to make those decisions yourself. This ensures that someone you trust will make decisions about medical treatment, surgery or end-of-life care in a way that reflects your values and wishes.
Trust Documents
For some clients, estate planning might require more than just a will or POA. If your estate is large or involves specific assets, such as real estate or a family business, it may be better to suggest an alternate route, such as forming a trust.
4. Trusts
A trust is a legal arrangement where you (the grantor) transfer assets to a trustee, who then manages those assets on behalf of the beneficiaries. Trusts can help avoid probate, which means that your assets don’t have to go through the public court process. They’re also useful for clients who want to specify exactly when and how their beneficiaries will receive their inheritance. A trust can provide clients with nearly absolute control over their assets.
5. Certification of Trust
A Certification of Trust is a brief document that confirms the existence of a trust and outlines the trustee’s powers without revealing the full details of the trust. It’s often used when dealing with financial institutions or real estate transactions where the trustee needs to show that they are acting with proper authority, while giving away no explicit details.
6. Deed to Trust
This step is especially important for ensuring the client’s property is managed and distributed according to their wishes. A Deed to Trust is used to transfer property into a trust, sort of like depositing it into a savings account. This allows the client complete control over how their real property will be managed and divided.
7. Bill of Sale
A Bill of Sale is used to transfer ownership of personal property – like cars, boats or valuable items – into a trust. It documents the sales and can provide proof of ownership. It is a fairly simple form, but it has an important role in ensuring that personal property is properly handled in the estate plan.
Start Planning Today
Estate planning is an essential process for anyone who wants to make sure their assets are protected, their healthcare decisions are honored, their final wishes are respected, and their loved ones are taken care of.
When in doubt, speak with your attorney to understand your options and to ensure that your estate plan is tailored to your needs.
At Arkansas PBS, we offer a free personal estate planning toolkit available as a digital download or printed copy. For more information, email legacygifts@myarkansaspbs.org, or call 800-662-2386.