In honor of Teacher Appreciation Week, the first week of May, we are taking this opportunity to thank you for your time and dedication to teaching the future generation. We are here to make sure you have the foundational estate planning documents to ensure your own successful future. Below are some basic questions and answers about estate planning and how estate planning, or the absence of an estate plan, may impact your life.
What is an estate? Although you may not be a billionaire, you have an estate that needs a proper legal plan. Estate is a general term used to describe everything you own. This includes things such as bank accounts, real estate, household furniture, automobiles, etc. At your death, everything you own has to find a new owner.
What is an estate plan? An estate plan is your personal set of lesson plans for your trusted decision-makers’ use. The legal documents that dictate what will happen to you and your money and property at your incapacity or death. If you have a minor child, your estate plan can also enable you to nominate your child’s guardian.
What documents make up an estate plan? If you have already had some of the following documents prepared, you are on the right track. If you have not had any of these documents prepared, we are here to make sure you have a plan for any situation. As a teacher, you are well aware that having a plan makes teaching go much more smoothly. By analogy, we will consider your estate planning documents to be your lesson plans for your loved ones.
Revocable Living Trust (RLT). It is a document you create during your lifetime. You can change this trust at any time until you become incapacitated (unable to make your own decisions) or die. Contrary to what some may think, you do not have to have a lot of money and property to benefit from a trust. An RLT allows you to continue enjoying your money and property during your lifetime and to designate what will happen to that money and property upon your death, protecting it for your chosen recipients. An RLT can be an excellent way to provide instructions to your loved ones about handling the money and property owned by the trust.
Last Will and Testament. Also called a will, is where you name a personal representative (the person who collects all of your accounts and property, pays your outstanding debts, and distributes your money and property to those you have named), specify who will receive your accounts and property, and name a guardian for any minor children.
General Durable Financial Power of Attorney (GPOA). You choose a trusted person, or agent, to handle financial transactions (e.g., signing checks, opening bank accounts, signing a deed, etc.) for you, similar to assigning certain classroom tasks to a teacher’s aid.
Medical Power of Attorney (MPOA).A MPOA allows you to name a trusted healthcare decision-maker to communicate your healthcare wishes or make medical decisions on your behalf if you cannot do so, like a substitute teacher for your healthcare.
Next Assignment. Now that you are familiar with what estate planning is and the benefits it can provide for you and your loved ones, your next assignment is to call us. Together, we can dive deeper into your unique situation and design a lesson plan that will protect you and guide your loved ones.