Will, Probate, and Power of Attorney – What Individuals Need to Know Before Estate Planning: Scott Tominaga
Many people put off estate planning until it’s a must, although taking care of the matter can be instrumental in having peace of mind both for individuals and their family loved ones. Having a clear insight into the important aspects of wills, probate, and powers of attorney can make the process less challenging and much smoother, in the opinion of Scott Tominaga. These features are key for individuals in protecting their assets and ensuring that their wishes are followed while avoiding legal issues. Here’s what one should keep in mind before starting estate planning.
The Importance of a Will
A will is, in essence, the pillar of an estate plan. It refers to a legal document outlining how the assets of an individual should be dispersed upon their death. Without a lawful will, the state enters the scenario to determine how the property is to be divided, which might not align with the wishes of the deceased.
An expertly drafted will should identify the beneficiaries, name guardians for minor children, and help in appointing an executor, someone responsible for administering the estate. A will can also assist in alleviating family conflict and providing at least some clarity during an emotional situation. It is worth noting that a will is not only meant for the rich class of people, but any individual with some assets, like a home or some savings, can consider having a will, as it helps minimize possible clashes among the family members left behind.
Understanding Probate
Probate refers to a judicial process of authenticating a will and dividing the deceased individual’s property under the supervision of the court. It entails locating assets, settling debts and taxes, and making sure the rest is divided as wished in the will, or decided by law, where there is no will.
According To Scott Tominaga, probate may be time-consuming and costly, depending on the intricacy of the estate. Yet, some assets are entirely probate-exempt. These assets include life insurance policies, retirement accounts with named beneficiaries, and joint property. Careful planning can reduce the burden of the probate process on loved ones.
Power of Attorney: Planning for Incapacity
When people think about estate planning, they usually focus on what happens after they pass away. But it’s just as important to consider what if an individual becomes unable to make decisions due to mental issues or incapability. Here comes a legal document referred to power-of-attorney (POA) that lets someone designated to perform the jobs related to laws and financial aspects on behalf of the person.
There are different types of POAs, including:
- Durable power of attorney: This remains in effect should the individual be mentally incapacitated.
- Medical power of attorney: This allows someone else to make healthcare decisions if the individual is unable to do so.
It is important to select a trustworthy and capable agent. Without a POA, the loved ones left might have no option but to go through a costly and time-consuming court process, which eventually takes control over decision-making.
Putting It All Together
Estate planning is not only for the affluent—it’s for anybody who desires to have control of their medical treatment, property, and the future of their family. Having a plan with a will, suitable POAs, and ways to keep probate from interfering is well worth the time, money, and stress it could save.
Also, it makes sense to review an estate plan now and then, particularly after significant life-changing events take place, like getting married, divorcing, giving birth to a child, or a major alteration in financial position.
If Estate planning appears complex, learning the most important elements, such as wills, probate, and powers of attorney, can make it much more accessible. Meeting with a financial advisor in addition to an estate planning attorney is an excellent idea to make sure everything is legally correct and developed for individual requirements.
