A Last Will and Testament is a document that will pass your property to those you choose after you are gone and to choose those who will take care of your children. Probate of your will is the way that your decisions will be carried out. Most of us are concerned about the high cost of probate , which is usually incorrectly referred to as inheritance taxes. Probate fees are minimal and set by the legislature based on the value of your probate estate. Inheritance taxes are establihed by taxing agencies and the amount you pay , if any, are also based on the value of your estate.
A Trust is a document that transfers title of your property during your life to a third party or entity to manage your property for your benefit and the benefit of those you choose, such as your children. The third party or entity is obligated to act for your benfit or the benfit of the individuals or corporations you designate.
Powers of Attorney give someone you choose the ability to make financial and health care decisions for you. In some cases, the powers can be used to carry out your wishes when you are not able to make decisions for yourself.
No matter what document you choose to manage your property, you need to be prepared to select a trusted individual to carry out your wishes as well as a second individual in case your first selection is unable to act for you.
