ESTATE PLAN BASICS

The basic components of any estate plan include a will, a durable general power of attorney, a durable health care power of attorney and a living will. Some estate plans will also warrant inclusion of a revocable or irrevocable trust agreement. Below is a brief overview of the basic documents in an estate plan. While this overview may be helpful, it is not intended to take the place of meeting with a qualified attorney to discuss your specific situation and goals to ensure your estate plan makes the most sense for you and your family.

WILL

A Will is a written document that directs the disposition of your assets after your death. The Will is the document where you name an executor to handle your estate. Finally the Will is the only document where you can name a guardian to care for your minor children.

If you die without a Will in New Hampshire , state law directs who administers your estate and how he or she will distribute the assets of your estate. For some, this statutory distribution scheme is a logical distribution, however, for others this may not be exactly how you envisioned your assets being distributed. The individual the statute names as administrator may not be the person you would choose. Finally, if you have minor children, the person or persons you would have liked to step in and raise your children may not be the individuals who ultimately petition the Court to be appointed guardian.

REVOCABLE TRUST AGREEMENT

A Revocable Trust Agreement is a valuable estate planning tool for many people. Under the Trust Agreement, you, as Grantor, name a trustee is to take over the management of trust assets upon your incapacity or death.

One of the main reasons for using a Trust Agreement is to avoid the probate process. If the Trust is properly funded during the Grantor's lifetime, there is no need for probate administration following the Grantor's death. Typically the executor only needs to file the original Will, death certificate and statement that all assets were held in trust at the time of death.

Trust Agreements also offer flexibility with regard to the management of assets. The Grantor can establish conditions under which trust funds are distributed to beneficiaries. For example, a couple with younger children can state that the property in trust may be used first to pay for education, then distributed outright to their surviving children once they have completed college, are a bit older and better prepared to handle a potentially substantial inheritance.

Revocable Trusts by definition can be amended or changed by the Grantor, including the terms and what property is held in trust and can even be revoked in its entirety. So long as the Grantor is alive and competent, the assets remain under the Grantor's control.

 DURABLE GENERAL POWER OF ATTORNEY

A comprehensive estate plan should not only direct the disposition of assets at death, but also make provisions for the management of assets during your incapacity. A Durable General Power of Attorney is a written document in which you name an individual to act as your agent to make decisions on your behalf regarding your property and other financial affairs.

DURABLE HEALTH CARE POWER OF ATTORNEY

A Durable Health Care Power names an agent to make decisions about your health care. The document asks you to acknowledge what decisions your agent can make, for example, whether your agent can direct the withholding of any artificial hydration or nutrition. Needless to say, whomever is named as an agent under the Health Care Power of Attorney should have an understanding of your wishes in these situations.

LIVING WILL

A Living Will works in conjunction with a Durable Health Care Power of Attorney. A Living Will is a declaration of your wishes with respect to starting or withholding artificial hydration or nutrition when you are permanently unconscious and death is imminent. The wishes made clear in the living will should be consistent with your Durable Health Care Power of Attorney, however, if there is any inconsistency, your agent's decisions will trump the Living Will. Again, it is important that your agent understand whether a Living Will has been executed and what your declarations were.

The attorney who wrote this article is no longer at the law firm of Hamblett & Kerrigan, P.A. in Nashua. Other practitioners at the firm handle work in the same areas of law which she worked in, which included employment law, family law, and general litigation, including property tax abatement and personal injury. You can reach one of those lawyers by calling the law firm (883-5501) or by e-mail at info@nashualaw.com .

This information is general information and may not reflect the most current legal developments, verdicts or settlements. The information provided should not be relied upon as an indication of the actual state of the law or of future developments. The information contained on the Hamblett & Kerrigan website is for informational purposes only and does not constitute legal advice. If the information referenced may be of legal importance to you, you should consult with an attorney to provide you with legal guidance and opinion as the the effect of the current law upon your situation.