Estate plans come in two (2) basic flavors: Trust Estate Plans and Will Estate Plans. Trust Estate Plans (often called “Revocable” or “Living” Trusts) are primarily used in any of the following situations: 1. You own property that will have to go through probate at the time of your death (any real estate, investments, bank accounts, or other property owned by you individually), and you want to avoid having that property go through probate. 2. You have children or grandchildren that you do not want to receive their inheritance when they turn 18. The inheritance can be held in a Trust to be used for college or trade school education, or until the child or grandchild reaches a more mature age. You might, also, use a Trust to manage an inheritance for adult children who you do not think are capable of handing their inheritance. 3. You have a blended family, and you and your spouse want to preserve your estates for your respective children. Trusts can be created to maintain each spouse’s control over his or her assets. 4. You have a “special needs” child who is receiving needs-based government benefits. A Trust can be designed to protect those benefits while still providing additional support for your child. 5. You are married and have a combined estate that is large enough that it will be subject to either Federal Estate Tax (more than $5.25 Million in 2013), or the applicable state inheritance or estate tax in your state. If any of these circumstances apply to you, then you should consider having a Trust Estate Plan. A Will Estate Plan is for individuals who have decided that it is OK for their property to go through probate at the time of death. Perhaps you do not own much property that will have to go through probate at the time of death. Both Plans include both Durable Power of Attorney and Power of Attorney for Health Care, which are intended to avoid Probate Court involvement in the event of your incapacity.
