When creating an estate plan, we know your #1 concern is providing security and peace of mind to your loved ones. You want a plan that shields your family from as much liability as possible, offers flexibility and covers all of your final expenses. That’s why we want to make sure you understand why a Power of Attorney is an important addition to your estate plan - and may even be more important than a will in certain circumstances.

Will Vs. Power of Attorney

A will governs the distribution of your estate after you die. If you don’t have a will, each state has its own default statute that sets forth the order in which your relatives will inherit your assets; this is determined during probate. (See A Will Does Not Avoid Probate for more details on the probate process). However, if you become incapacitated in any way, whether from a physical accident, disease, ailment, or deteriorating mental capacity, your final wishes outlined in your will do not apply. Also, contrary to popular belief, there is no state statute that provides a spouse, child, etc. with the authority to manage your finances without obtaining the permission of a court to do so. A Financial Power of Attorney is critical. It gives your loved ones clear instructions and the legal authority to proceed with the management of your finances if you are no longer able to manage the decisions on your own.

A Power of Attorney for Finances is the document that allows you to nominate an agent to handle financial transactions for you in the event of your incapacity, from paying your bills and taxes to managing your daily activities and financial needs. If you don’t have a Power of Attorney, an “interested party” can petition the court to obtain a conservatorship over your assets. This is a time-consuming and costly process. It may also result in a scenario where a relative whom you do not wish to have access to your finances, but who is technically next of kin, is the one petitioning the court for conservatorship. A Power of Attorney will allow you to choose for yourself, while you’re fully present in body and mind, to whom you wish to give this access.

How A Power of Attorney Can Simplify the Estate Planning Process

Without a Power of Attorney, your loved one will be forced to start the process of petitioning for conservatorship. This process can take several months and usually costs thousands of dollars. Once granted, the conservator will have to provide annual accountings to the court, detailing how each dollar of the estate was spent in the previous year. These reports are often prepared by an attorney, adding costly and ongoing fees to your estate.

With an active Power of Attorney, your loved one will not have to create or provide these documents and the cost is minimal in comparison.

Want to learn more about how a Power of Attorney can simplify your estate plan? Contact Wy’East Law today.

When a loved one dies, it’s difficult enough to cope without worrying about the division of assets, paying off the decedent’s debts, and dividing his or her property among the family. After you’ve said your final goodbyes, you’ll likely want to move through the process of dividing the assets between the family and paying off all outstanding debts immediately. You may think that because a will exists, you can accomplish this on your own. Unfortunately, this isn’t accurate. First, you must go through the probate process. Yes, even with a will.

What is Probate?

Probate is the process of transferring the assets of the decedent to his or her heirs upon the decedent’s death. The process is started by a personal representative (often referred to in other states as the executor). Once the representative is officially appointed by the probate court, some of the various tasks he or she is required to perform include:

Posting a public notice to all the decedent’s creditors for 3 weeks in a local newspaper
Preparing an exhaustive list of all of the decedent’s assets to be filed with the court
Paying off all creditors over a period of four (4) months
Paying all final property and income taxes
Preparing a final accounting record for the court (including a listing of all the assets of the estate, income received and expenses accrued throughout the probate process, all payments to creditors, and a projected accounting of distributions to beneficiaries)

Once the court approves the record, the representative may pay the beneficiaries and probate is closed.

What if the Decedent has a Will?

If the decedent has a will, the probate process is identical with two exceptions.

First, the decedent is able to choose their own personal representative instead of the person whom the court would choose from the statutory order of preference.

Second, the decedent can leave his or her estate to beneficiaries other than those outlined in the state’s intestate succession laws.

How Can A Probate Attorney Help?

When you or a loved one are faced with taking an estate through probate, a probate attorney can make the process much less stressful. Wy’East Law can help with filing documents with the probate court, maintaining a record of all expenses, assets, and income, and guaranteeing that all requirements of probate are met before an estate is divided among heirs. This can avoid later issues with taxes or lawsuits from creditors.

Want to learn more? Call us today at (503) 354-6402.