Planning Ahead: Part Two
Dunn & Hemphill, PA • December 3, 2020
Planning Ahead Part 2: The Last Will and Testament
In Part 1 of “Planning Ahead,” we defined estate planning as the process of arranging for the use and transfer of your assets during your lifetime and at your death. This week we will focus on one of those basic estate plan documents, the last will and testament, and how to avoid probating it. In its simplest form, a last will and testament is a document that you create during your life to direct how your assets will be used and distributed at your death and place someone in charge of that distribution (the "executor" or "personal representative"). A will only controls property owned in your individual name at the time of your death, and it must be probated in the local Chancery Court before your executor can have authority over your assets.
If you are a couple and completely trust your partner, you could use joint ownership of real and personal assets and pay on death beneficiary designations to control the passing of your assets at death without probate of your will. You likely still need a will so that it can be probated when the surviving partner dies. Jointly owned accounts do have their risks. Any joint owner of a bank account can access the funds. Also a judgment or tax lien against a joint owner can result in loss of that bank account to that creditor. For a single person or partners who have differing interests or want their assets to pass at death to someone else, a will is even more important.
A last will and testament is effective when you sign it but not operative until death. In our next installment, we share important information about powers of attorney, a tool that empowers a trusted person to handle your financial affairs during your life.
If you are a couple and completely trust your partner, you could use joint ownership of real and personal assets and pay on death beneficiary designations to control the passing of your assets at death without probate of your will. You likely still need a will so that it can be probated when the surviving partner dies. Jointly owned accounts do have their risks. Any joint owner of a bank account can access the funds. Also a judgment or tax lien against a joint owner can result in loss of that bank account to that creditor. For a single person or partners who have differing interests or want their assets to pass at death to someone else, a will is even more important.
A last will and testament is effective when you sign it but not operative until death. In our next installment, we share important information about powers of attorney, a tool that empowers a trusted person to handle your financial affairs during your life.
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Planning Ahead Part 1: The Building Blocks of an Estate Plan
Planning Ahead Part 3: The Durable Power of Attorney
Mississippi's New Transfer-on-Death Deed
Deed with Reservation of a Life Estate
An Introduction to Long-term Care Planning
Defining Exempt and Non-Countable Resources
Gifting Assets and Medicaid Asset Protection Trusts
