A will is the most common document used to specify how an estate should be handled after death. Anyone designated to receive property under a will (or trust) is called a beneficiary. A will can be simple or elaborate, depending upon the size of the estate and the wishes of the person who makes it -- the testator. Many types of post-death instructions can be described in a will. A will can describe who should receive specific items of furniture, artwork, or jewelry. A will can name a guardian who will take care of minor children should there be no surviving parent. A will can disinherit a child if the testator does not want the child to receive any part of the estate. The options for what a person can do with a will are varied but limited.

A living trust can be either revocable or irrevocable. As implied by their names, a revocable trust can be changed or revoked after its creation, while a person signing an irrevocable trust gives up the right to change or revoke the trust. Revocable trusts are quite often devised to supplement a will and/or to name someone to handle the grantor's affairs should the grantor become incapacitated. A trust usually must be made irrevocable if the grantor wants to avoid income or estate taxes. Tax authorities consider the grantor of a revocable trust to be the owner of the property because he or she still controls the property. For this reason, income from assets held in a revocable trust must be reported as income to the grantor for income tax purposes. At the death of the grantor, property in a revocable trust is included in the estate for calculating estate taxes.

Irrevocable trusts are often designed to be the beneficiary of a life insurance policy. Such a life insurance trust can also spell out how the policy's money is distributed to survivors. In addition, irrevocable trusts are often set up to manage money given to minors and to charities. Finally, an irrevocable trust can be used to transfer assets to another person in the event that the grantor requires expensive medical care. Although doing so may protect the grantor's family by ensuring that the cost of medical care does not wipe out the family fortune, it may also make the grantor ineligible to receive federal and state Medical Assistance.

Living wills and healthcare power of attorney forms allow you to express your preferences regarding your medical treatment, should you become unable to communicate your wishes due to illness or permanent unconsciousness. They also allow you to designate a person who can make end-of-life care decisions on your behalf.

An important part of lifetime planning is the power of attorney. Valid in all states, these documents give one or more persons the power to act on your behalf. The power may be limited to a particular activity (e.g., closing the sale of your home) or general in its application, empowering one or more persons to act on your behalf in a variety of situations. It may take effective immediately or only upon the occurrence of a future event (e.g., a determination that you are unable to act for yourself). The latter are "springing" powers of attorney. It may give temporary or continuous, permanent authority to act on your behalf. A power of attorney may be revoked, but most states require written notice of revocation to the person named to act for you.

A Conservatorship pertains to the same issues as a Power of Attorney. In a Conservatorship, the Probate Court appoints someone to act on your behalf because you’re no longer deemed to be of the sound mind for which to make such decisions yourself. With a Conservatorship, you completely give up your own powers as opposed to a POA wherein the assigned powers are in addition to your own. That is an extremely important distinction. With a POA, you’re still in the game alongside the person you appoint as your POA. With a Conservatorship, you’re sitting on the bench, with absolutely no control over the game.

A person with minor or dependent children can name in a will a guardian to care for those children should there be no surviving parent. If a person fails to name someone to assume the role of guardian, the probate court appoints someone. The person chosen by the court will usually be a close relative or friend, but it may not be the person the parent would have chosen. As with the selection of a personal representative, it is important that the potential guardian understands the provisions of the will and is willing to accept the responsibilities of being a guardian. Also, it is wise to name an alternate guardian should the primary guardian be unable to accept the responsibility. Of course, the selection of a guardian for children is likely to influence how the parent wants to distribute his or her property. Otherwise, a decedent's money might go to one person while his or her children go to another person. The parent may want to give property to someone only if the recipient accepts guardianship of a child. In this way, the guardian is given the financial resources to care for the child.

With few exceptions, the estate of a person who dies owning property in his or her name cannot be legally distributed without first going through probate. Only if all of a decedent's property is held in joint tenancy or in trust can survivors avoid probate. Probate can operate either formally, with court supervision, or informally, without court supervision. Whether formal or informal, the first duty of the probate division is to determine whether the decedent left a valid will. If the decedent left a valid will, the division oversees the process of settling the estate according to the terms of the will. If the decedent did not leave a will or if the probate division determines the will is invalid, the probate division applies the state inheritance laws, described earlier, to the estate.

Informal probate is designed for estates in which court supervision or adjudication is not required because the estate has no uncertainties, legal disputes, or complex administrative requirements. A personal representative can apply for informal probate and become personally responsible for probating the estate completely, correctly, in accordance with state statutes, and promptly. Most personal representatives engage an attorney to handle at least a portion of their duties even with informal probate.

Closely held businesses present unique challenges to the person planning for his or her estate. Often a businessperson's interest in a closely held business is his or her primary source of income and constitutes the bulk of his or her wealth. Because interests in a closely held business often lack liquidity and are difficult to value, transferring them before or after death can be difficult and determining the taxes owed can be time consuming.

Only an attorney experienced in estate planning for owners of closely held businesses can adequately advise on all aspects of treating closely held business assets. Before an attorney can prepare a will or trust, however, the person with an interest in a closely held business must consider his or her own need for income until death, the likelihood that someone in the family will want to continue playing an active role in the business, and the ability of a recipient to pay death taxes and administration costs if the business is going to continue after the owner's death.

A Family Limited Partnership (FPL) can provide remarkable advantages and planning opportunities. By itself, or in combination with other techniques, the FLP can be used to create a powerful strategy for asset protection and for realizing estate tax and income tax benefits. We will start with the background on this technique.

On February 8, 2006, the President signed into law the Deficit Reduction Act of 2005. The Act is designed to cut the federal budget deficit. Among other provisions, the Act contains fundamental changes to the Medicaid eligibility rules and long-term care coverage. The new rules will impact significantly estate plans where preservation of family business assets is a major objective. That is a common estate planning objective for farm and ranch families.

When someone dies (referred to as a "Decedent"), the Decedent's surviving family members and/or friends need to gather up the Decedent's assets, pay any debts and expenses, and distribute the Decedent's remaining property to the proper beneficiaries. In many cases, tax issues will need to be addressed. Different procedures will be required, depending on the type of assets that the Decedent owned, the specific details of the Decedent's estate plan, and the circumstances that exist at the time of death.

Have you considered these questions?

What would happen if you were not around or not able to speak on your pet’s behalf?

Do you know that being away from you can cause severe anxiety to your pets?

Does anyone know your pet’s schedules, diets, medications, special words or toys?

Do you know that having someone aware and able to keep them in their routines is critical?

If you are traveling with your pet and get separated, could you be reunited?

If you have made long-term care plans for your pet, are the details in writing?

Are these documents in the hands of the people who will rely on them; alternate caregivers, veterinarians, family members and/or attorneys?