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purposeful.estate.planning
ESTATE PLANNING
Estate planning is a proces encompassing many possible components.
Planning may involve creation of a simple will and powers of attorney, or more sophisticated documents to plan for the care of minor children, or increase the non-taxable estate of a spouse. Often, purposeful planning involves a combination of planning vehicles, all working in tandem to achieve client goals.
As a process, the first step requires a detailed analysis of client goals and continues with an in-depth consideration of factors that could impact these goals.
At Harpeth Law, we offer a no-cost, no-obligation consultation during which we discover a client's goals and makes recommendations for achieving these goals in the most efficient, cost-effective and thorough manner.
Fees for planning depend solely on the client's individual situation, and most services are offered on a flat-fee basis.
Please click on the tabs to the right to learn more about specific components of estate planning, including wills, trusts, and powers of attorney.
Wills. A properly-drafted will is an integral part of an effective estate plan in Tennessee.
In general, a will sets forth an individual's wishes for the distribution of his or her estate (property), upon death. In your will, you identify who shall receive your property, and in what form.
Further, a well-drawn will should always address numerous matters specific to probate law in Tennessee, to ensure that your estate may be probated efficiently and at the least expense possible. The probate process in Tennessee typically is not a cumbersone one, unless someone dies intestate (without a will) or with a will that fails to adquately plan for probate.
A will also can offer vehicles for protection of assets, called testamentary trusts. For example, such trusts may provide planning for controlled distribution to minors or incompentent individuals, or tax savings to heirs.
Since each state's laws differ regarding wills and inheritance, it is important to consult with a qualified attorney in your state of primary residence, in order to determine what your personal situation requires.
Trusts. A trust is defined as a property interest held by one person (the 'trustee') for the benefit of another person or persons ('beneficiaries'). A trust holds legal title to assets, which assets can be distributed by the trustee for the sole use of a trust's beneficiaries. A trustee is charged with managing the trust's assets for the benefit of the beneficiaries, and may not use the assets for any other purpose.
Trusts in Tennessee may take many different forms:
Living trusts are created during the life of the grantor (the person creating the trust), and may either be revocable or irrevocable.
Testamentary trusts are created within a will document, and only come into existence upon the testator's death, and then often only upon the satisfaction of certain contingencies. Testamentary trusts often provide for the protection of assets inherited by children who are minors when parents pass away, for example.
Marital trusts, often also testamentary trusts, may be implemented to increase the non-taxable estate of a married couple upon inheritance by their children. Marital trusts may also protect assets from future claims in the instance of second marriages following death of the first spouse.
Whether a trust should be included as part of an individual's estate plan depends on individual circumstances and goals, to be determined during the estate planning process.
Powers of Attorney. Wills and testamentary trusts implement plans following death, while powers of attorney are documents relevant to planning during life.
People often contemplate the need for life planing as they age. However, such planning is important for everyone, regardless of age or health status. In Tennessee, if you don't have proper powers of attorney in place, your family or caregivers may be forced to seek court appointment of a conservator in order to manage your care and assets should you become disabled and thus unable to care for yourself.
Three documents address simple life planning:
A Durable General Power of Attorney grants your attorney-in-fact the power to make decisions relevant to your financial and personal business, and real property.
A Durable Power of Attorney for Health Care grants your attorney-in-fact the power to make your health care decisions in the event you are unable to do so. Without this document, your family may find they have no voice in determining the course of your care upon your disability.
A Living Will, a form of advance medical directive, sets forth your wishes in regards to medical treatment you wish to receive, and gives you the opportunity to make your wishes regarding organ donation known at the appropriate time.
BEWARE! Websites offering will and power of attorney forms cannot offer legal advice. Creating an effective and appropriate will and estate plan requires an assessment by an experienced attorney, and cannot be achieved through a mass-produced 'form' website.
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