Estate Planning use to be not much more than deciding to write a Last Will and Testament, and hiring a lawyer to follow through with this decision. As with the rest of life, Estate Planning has become more complicated. Generally, estate planning includes advance planning for handling your financial and personal affairs should you become incapacitated while still living, as well as planning how you want to dispose of the assets held in your name after your death (this is your estate). Even this last part of planning is more complicated because there are more choices. Now, not only can you use a Will to dispose of your assets, but a Statutory Will, a living trust, a pour-over trust, and many other possibilities need to be considered.

Wills

A Power of Attorney can handle your financial affairs during your lifetime. It does not have any legal authority for disposing of your assets after your death. For this you must use a testamentary document, such as a Last Will and Testament.

Most people go to a lawyer to have a will written for them. The will sets out

1.       how they want to pass on their belongings, and

2.       who they want appointed to administer their estate (the probating).

In Michigan, there are two variations that also are legal wills. One is the Statutory Will; the other is a Holographic Will.

For one reason or another, many people die without any estate planning or a will. It’s a good idea for everyone to have a will. Because it’s easily available and free, a Statutory Will is a good choice for a basic estate planning option. There are some good, sensible reasons to have a will: ·

·         A will ensures that your assets will go to who you want to receive them upon your death;

·         A will allows you to name the person to be in charge of administering your estate;

·         A will can save some costs of probate; and

·         A will can bring peace of mind knowing your affairs are in order.

Excerpted with permission from Advancing Smartly:  A Legal Handbook for Michigan Women Age 60+. Published by Elder Law of Michigan