Basic Components of Estate Planning: Part 1
By: Dr. Ronald J. Trevisani
We welcome financial and legal pearls from Dr. Trevisani, who was invited to join the Resnik Implant Institute as a faculty member. Ronald J. Trevisani is a Pharmacist, Dentist, Oral and Maxillofacial Surgeon, and Licensed Attorney in Florida. He has multiple oral surgery centers in Florida and a law firm specializing in asset protection and estate planning for Dentists and Physicians. He welcomes questions & comments for both Legal and Financial matters.
Estate Planning can sometimes be a confusing and exhaustive process. The discussion of one’s death or early demise is not pleasant, and many documents need to be generated. These documents must also meet the Legal requirements in the individual jurisdictions (states). If not completed properly, an expensive and time-consuming court proceeding may ensue. A court may have to determine the true intent of the testator (originator of the will.) A few necessary documents will be discussed below and in future articles.
Will: The Last Will and Testament is what most people consider necessary when completing their Estate Planning documents. The Will states who you desire to own your assets upon your death. The will also dictates how and when these assets are to be distributed. An executor will be appointed to administer the Estate. The beneficiaries should be identified. Also, if you have underage children, the Will should appoint a guardian in the event you and your spouse, if any, become incapacitated or incompetent.
Will Formalities: The originator of the Will is called the Testator. The Will must be written, witnessed, and notarized. This is state-specific. The maker of the Will must be 18 years old (most states), and be of sound mind when the Will is signed to be valid. The Will does not become activated until the death of the testator. Video wills are not valid by themselves in many states, including Florida. The Video Wills can be a valuable supplement and are useful in many instances. A video can verify the testator is of sound mind and show a lack of fraud and undue influence. We will expand on the benefits of video wills in a later segment.
Power of Attorney: A Power of Attorney (POA) is a legal document delegating authority from one person to another. With Estate planning documents, the principal (individual delegating the POA) allows someone else (agent) to act on their behalf. The POA will allow you to appoint someone to handle your finances in the event you become incapacitated. A limited POA can be specific as a single item, like divesting real estate only or selling investment products only. A Durable Power of Attorney remains effective even after incapacitation or death. The Durable POA must contain special wording that it is to survive the principals’ incapacitation.
To be Continued…
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