GABRIELLA BIEDINGER - HER LIFE Magazine

herlife | primeEssentials for EstatePlanning and Planned Givingby candi smithAs you approach the autumn of your lifetime, you should beginto put your financial affairs in order to ensure that you providefor your loved ones you leave behind. However, you alsomight consider a legacy of giving so you can keep on changingthe lives of others in society long after you’ve passed.First, when it comes to estate planning, there are a few must-havedocuments you should establish to ensure that your financial and personalwishes are conveyed.According to Julie Garber, an experienced estate planning attorneyand co-author of Estate Planning Strategies: Collective Wisdom, ProvenTechniques, there are five essential documents that provide an organizedapproach for dealing with your assets if you die or are mentally incapacitated.She recommends you find an attorney in your state versed specificallyin estate planning law.There are two basic types of estate planning—will-based and trustbased.Both estates should be covered by an Advanced Medical Directive,Living Will and Financial Power of Attorney. Additionally, will-basedestates should have a Last Will and Testament, while trust-based estatesshould have a Pour Over Will and Revocable Living Trust.An Advanced Medical Directive (sometimes known as a MedicalPower of Attorney) gives authority either to a guardian, conservator orhealth care agent to make medical decisions if you are declared mentallyincapacitated and unable to make those decisions on your own.A Living Will provides written instructions to a health care agentabout whether or not you want life-sustaining procedures if you havebeen diagnosed with a terminal illness or are in a vegetative state. Italso instructs family members on how to manage your quality of life incase of terminal illness.A Financial Power of Attorney delegates a person to manage yourfinancial assets (those titled in your name, including retirement plans) inthe instance that you are either deceased or have been declared mentallyunable to make decisions on your own. It can also be used to move moniesinto a Revocable Living Trust if you are incapacitated before the trusthas been fully funded. There are two forms of Financial Power of Attorney:Durable (which goes into effect immediately upon your signature) andSpringing (which goes into effect after you’ve been declared mentallyincapacitated).Trust-based estates are bound by a Revocable Living Trust whichcontains detailed instructions covering three important phases of your life:what happens when you are alive and well; what happens if you becomementally incapacitated; and what happens after you die. By putting yourassets into a Revocable Living Trust, you avoid having them tied up inprobate court (a process where your state court system determines howyour assets will be divided).For will-based estates, a Last Will and Testament contains detailedinstructions for how to handle your assets upon your death. And if youhave minor children, it will also contain provisions for designating a guardian.For trust-based estates, a Pour Over Will acts as a “safety net” for anyassets that you might have missed when you were setting up your trust. Itdoesn’t contain much detail since your main instructions are contained inyour Revocable Living Trust.You may also consider setting up planned giving, usually done tobenefit a nonprofit organization. Planned giving (also known as deferredgiving or gift planning) allows you to leave money/assets to a nonprofit54 HERLIFEMAGAZINE.COM