(UBS)
Together, we can create an estate plan that reflects your core values and maximizes the impact for who you care about most.
Types of estate planning documents:
Foundational documents
Estate planning involves more than planning out your final wishes. It’s also about preparing for a potential transfer of authority in case you reach a point where you cannot take care of your affairs during your lifetime. Estate planning is a comprehensive process that can begin with foundational documents including:
- Last will and testament
This is a legal document in which you appoint the executor of your estate, designate a guardian for your minor children and outline how you want to distribute your wealth. - Revocable Living Trust (RLT)
This functions in much the same way as a will. However, a probate court must administer a will. An RLT may avoid the probate process, saving time and money. It may also offer privacy from the public proceedings of probate. You fund your RLT, maintain access to the assets, and change its terms and beneficiaries while you have capacity. The trust agreement is your road map and the trustee must follow it. The trustee is a fiduciary, entrusted with control, management and asset distribution for your named beneficiaries - Financial Durable Power of Attorney (DPOA)
If you ever become incapacitated for a period of time, it is important to have someone authorized to make financial decisions for you. A financial durable power of attorney is the legal document in which you designate your attorney-in-fact to act on non-trust assets. - Medical directive
With an advanced medical directive, you can plan for your medical treatment in advance of needing it. You may preauthorize specific medical procedures or appoint someone to make decisions on your behalf if you are incapable. Advance directives may include a Living Will, Healthcare Power of Attorney (e.g., Healthcare Proxy; Medical Power of Attorney) and Do Not Resuscitate (DNR) Orders. - Health Insurance Portability and Accountability Act (HIPAA)
Release of this document permits your physician to discuss the details of your medical condition with someone you designate without violating the HIPAA privacy rules. Note: your Financial POA and/or Medical Directives may already incorporate HIPAA provisions within the document.
Advanced Trust Strategies
Beyond an RLT, a variety of trusts can help you address both family and philanthropic objectives. Some include Dynasty Trusts, Intentionally Defective Trusts (IDGTs), Grantor Retained Annuity Trusts (GRATs) and Spousal Lifetime Access Trusts (SLATs). These are irrevocable trusts and may help lower estate taxes, provide a measure of control and offer some asset protection. However, keep in mind you may permanently lose access to funds once they are moved into an irrevocable trust. Make certain you plan for your needs before funding these types of trusts.
Review your life insurance*
Life insurance is often part of an estate plan, whether it is a term policy to address the needs of the surviving spouse and family, or a permanent policy used for estate liquidity or enhancement. Reevaluate the purpose for the insurance you currently have and review the type, term and amount of insurance to ensure it is appropriate. Also, review the ownership and beneficiary designations of your policies to ensure they are aligned with your overall estate plan.
Communication
Once you have met with an attorney and established an estate plan, it is important to communicate your plan with your trustee, and if appropriate, your beneficiaries. Estate documents are not substitutes for conversations about values. Your family may not need to know all the details, but a discussion can be helpful. You should also place your documents somewhere that is not only safe, but easily accessible. Share this location with your trustee and other key parties.
Although creating an estate plan may seem overwhelming, it’s essential to help ensure you and your family are well prepared.
To make the most of your inheritance through a will, trust, power of attorney (POA) and more, visit our estate planning website .
*Insurance products are issued by unaffiliated third-party insurance companies and made available through insurance agency subsidiaries of UBS Financial Services Inc.
The above information is provided for informataional and educational purposes only. UBS Financial Services Inc., its affiliates and its employees do not provide tax or legal advice. Clients should contact their personal tax and/or legal advisors regarding their particular situations.
2024-1518751
Expiration date: 11/20/2025 Review Code: 4042728
