Fundamental estate planning tips every family should know

Everyone should have an estate plan and all estate plans are not created equal. What are some of the basic components of an estate plan and why is it important that we all have one? Estate planning helps you determine many things including how your assets will be managed during your lifetime if you become unable to manage them yourself, when it makes sense to distribute your assets while you are still alive, when to distribute your assets after your death and who your assets will be distributed to. Many factors go into estate planning and whether your estate is small or large, you need the help of an attorney to ensure your assets are distributed to your satisfaction. Trust There are different kinds of trusts and they can be arranged in many ways. Generally, a trust is an arrangement that allows a third party, known as a 'trustee', to hold assets on behalf of a named 'beneficiary', who will eventually get the assets in the trust. More specifically, trusts can specify exactly how and when the assets pass to a named beneficiary. Will A will is a legal document in which you give certain instructions to be carried out after your death. In your will, you can name: - Your beneficiaries. A beneficiary is someone who receives your assets according to the instructions in your will. - A guardian. You may nominate a person to be responsible for your child's personal care if you and your spouse die before the child turns 18. You may also name a guardian - who may or may not be the same person - to be responsible for managing any assets given to the child until he or she is 18 years old. - An executor. Your executor serves a very important role and has significant responsibilities such as collecting and managing your assets, paying debts, expenses and taxes that might be due, and then with the court's approval, distributing your assets to your beneficiaries according to the instructions in your will. Power of Attorney "A Power of Attorney, also known as a POA, is a document giving a third party legal authorization to act on your behalf. A power of attorney can allow someone to make medical and financial decisions for you. In the event you are unable to make medical decisions regarding your health, with a power of attorney, your agent can make those decisions for you," says Fakih. "A power of attorney can also extend to financial decisions and authorize your agent to sell your assets or otherwise invest them as they see fit." ----- Stephanie Fakih opened up Rights First Law in 2014. She chose a career in law because she has a passion for helping people. She is committed to protecting the rights of her clients and upholding the promises of the United States Constitution. Stephanie also works to ensure that her clients understand their legal situation and the laws affecting them and their rights. Stephanie attends several continuing legal education seminars every month to ensure she is at the forefront of the ever-changing law. Stephanie received her Bachelor of Arts degree from the University of Michigan-Ann Arbor and received her Juris Doctor degree from Fordham University School of Law in New York City. Stephanie is licensed to practice law in California and Michigan state courts and in the U.S. District Court for the Eastern District of Michigan. Published: Mon, Nov 10, 2014