Time for Retirement: Planning Out Your Estate

As you devise your retirement, one of the aspects that requires a significant amount of attention is estate planning. The more consideration you devote toward the planning of your estate; the more comfortable you can be in knowing that your loved ones will receive exactly what you've worked so hard to put in place for them.

Estate planning involves the following measures: a traditional will, a living will, the assignment of power of attorney, and in some situations, the establishment of a trust.

I. A Traditional Will:

Nick Fagan from EzineArticles.com defines a traditional will as:

"A will is a legal form that will ensure your estate gets divided how you desire. The person who owns the estate (money and belongings) is called the 'testator'. Without a will your estate is wide open to conflicts, problems, and lawsuits. For example your relatives may have a huge dispute over the property, which will lead to lengthy court proceedings and legal fees for lawyers, etc. Although there are many benefits to having a last will and testament, the law strictly views the document as a testator regulating the rights of others over his property upon death. The traditional will is the last will and testament, which is sometimes called a testamentary will. This will covers the disposition of personal property upon death and may also cover the testators wishes concerning who becomes the guardian over a minor child. This document is legally binding."

II. A Living Will:

Rebecca Berlin from AllLaw.com defines a living will as:

"A living will is a legal document that a person uses to make known his or her wishes regarding life prolonging medical treatments. It can also be referred to as an advance directive, health care directive, or a physician's directive. A living will should not be confused with a living trust, which is a mechanism for holding and distributing a person's assets to avoid probate. It is important to have a living will as it informs your health care providers and your family about your desires for medical treatment in the event you are not able to speak for yourself."

III. Power of Attorney:

LectLaw.com defines power of attorney as:

"A general power of attorney is very broad and provides extensive powers to the person or organization you appoint as your agent. A general power of attorney is usually used to allow your agent to handle all of your affairs during a period of time when you are unable to do so. For example, when you are traveling out of the state or country or when you are physically or mentally unable to handle your affairs. A general power of attorney is frequently included as part of an estate plan to make sure that you have covered the possibility that you might need someone to handle your financial affairs if you are unable to do so."

IV. Trust

FindLaw.com defines a trust as:

"A trust is a legal relationship in which one person (or qualified trust company) (trustee) holds property for the benefit of another (beneficiary). The property can be any kind of real or personal property--money, real estate, stocks, bonds, collections, business interests, personal possessions and automobiles. It is often established by one person for the benefit himself or of another. In those cases, it generally involves at least three people: the grantor (the person who creates the trust, also known as the settlor or donor), the trustee (who holds and manages the property for the benefit of the grantor and others), and one or more beneficiaries (who are entitled to the benefits).

It may be helpful to think of a trust as a contract between the grantor and the trustee. The grantor makes certain property available to the trustee, for certain purposes. The trustee (who often receives a fee) agrees to manage the property in the way specified." Please visit my reference sources for further information as to how you can insure that your wishes and instructions as they pertain to your estate are fulfilled and abided.