ESTATE PLANNING
An Outline Prepared by Gerald (Jed) Hornung
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LIFE IS FRAGILE. So, stewardship concerning our real and personal property should be considered a Christian faith responsibility. Thus, every person of adult age should
make estate planning decisions.
The attached material is believed to be accurate and authoritative information concerning Estate Planning. It is presented to parishioners and friends of the North Ferrisburgh United Methodist Church, to assist them with their Estate Planning,
DEFINITIONS:
WILL: Sometimes called a “Last Will and Testament” is a document that states what should happen to your real and personal property when you pass away. Most people use a will to name an executor for their estate; name guardians for their children; decide how debts will be paid; provide for pets and/or serve as a backup for a Living Trust.
LIVING TRUST: A written trust agreement (revocable or amendable as long as you are mentally competent) providing directions for disposal of your real and personal property and other important decisions that you might have made in a will. However, instead of an executor, you will have named a Trustee to deal with your assets, sell them, invest them or do whatever you want to instruct to be done with them, after you die. Usually a Living Trust names yourself and your spouse as Trustees, which enables you to RETAIN CONTROL of decisions concerning your property and other matters, until you pass away. Advantages of a Living Trust include: the avoidance of often lengthy and sometimes expensive will probate court hearings; and a Living Trust enables named beneficiaries to inherit property immediately, without probate court hearings. A Living Trust does not provide a vehicle for avoidance of State or Federal estate taxes.
VERMONT ADVANCE DIRECTIVE FOR HEALTH CARE (In other States, may be called a Living Will): A document providing instructions concerning the health care you wish to receive should you suffer: a terminal condition, with no hope of recovery; a permanent coma, with no hope of recovery; or should you find yourself in a persistent vegetative state, with no hope of recovery. You may also appoint a health care “Agent” who is authorized to make health care decisions for you, whenever you are no longer capable of making such decisions for yourself. Further, you may express your wishes about “Limitations of Treatments”, including CPR, breathing machines, feeding tubes and antibiotics. The Advance Directive form allows you to express your wishes related to “organ/tissue donation and your preference for funeral burial or cremation”. For further information visit the website: http://healthvermont.gov/vadr/ or call
1-800-548-9455.
ESTATE PLANNING OVERVIEW:
Simply stated, an Estate Plan is a plan for the distribution of one’s personal and real property after a person’s death. Individuals are encouraged to make an inventory of their real and personal property. Many are surprised to learn that they own more property than they realized.....and no one can tell about the future: an unexpected inheritance, an accumulation of pension benefits or stocks and bonds.
The surprise for many people is, that unless you have personally written a will or executed a Living Trust, the State of Vermont has written a distribution plan for you. The State of Vermont plan may not distribute your property to people or institutions important to you. For instance, the Vermont Intestacy Law would never specify an estate donation to the North Ferrisburgh United Methodist Church and the Vermont law might appoint Executors for your estate or Guardians for you children, that would not meet with your approval.
Some types of property are not affected by the presence or absence of a will or a living trust. This includes Life Insurance with a named beneficiary or property held in joint tenancy.
With respect to most other property, unless you want the Vermont Intestacy Law to write your will for you, it is best to prepare a will or a living trust NOW, before death occurs. Admittedly, the planning involved in writing a will or a living trust may be difficult. You will need to establish objectives and priorities by using your best prayerful judgement.
Questions: Should all of your children be treated equally? What will your surviving spouse or children be capable of doing...concerning handling finances...managing your property, etc.? Will aging parents be a problem? What about donation bequests to your church or favorite charities?
Since there is no universal estate plan that meets all needs, (which the State of Vermont Intestacy Law simply cannot provide), your personal estate plan, with your own will or living trust, should be fashioned to meet your particular desires and situation.
Should you not now have a written will or living trust, you are encouraged to get one or the other.....and do it soon!!!! Don’t put it off!!! Nearly half of all Americans die without having written a will or living trust. Most of them, no doubt, planned to do so, and just put it off. Even some famous lawyers died without a will or writing a Codicil to amend their will. Former Chief Justice of the U.S. Supreme Court Fred Vinson died without a will. The Executor named in Robert Kennedy’s will was still John F. Kennedy, though Pres. Kennedy died some time before his brother Robert Kennedy’s death.
If you already have a will or a living trust, it is always important to frequently review your document. Many things can happen. Usually, there are constant changes in your family such as marriages, births, deaths. There may also be changes in the nature and value of your properties. You might purchase property in another state. Vermont State Law might change and/or the court’s interpretation of them.
It is advisable to seek the advice of a Vermont Attorney in writing your will or your living trust. Should you be concerned about the expense, simply ask an attorney what the cost would be for writing your will or a living trust. A well written will or living trust could easily save the writer’s heirs far more, in the long run, than the cost of engaging a Vermont Attorney for estate planning assistance.
On the following pages, you will find a questionnaire, which when completed, will be of great assistance in helping your attorney prepare an estate plan for you and the completed form will be of great assistance in helping you and your family keep track of important information.
PERSONAL DOCUMENTS
- NAME (Including maiden)______
STREET ADDRESS______
CITY______STATE______ZIP______PHONE______
Social Security Number______Birthdate______
Marital Status______Previous Married Name______
Relationship (if not spouse)______
Address______Phone______
Location of Will or Living Trust______
Location of Safe Deposit Box -- Bank______
Bank Address______
______
Location of Safe Deposit Box Keys (and Duplicate Keys)______
A Safe Deposit Box is not a proper safekeeping place for items your family, executor or trustee will need immediately after you are deceased, such as your will or living trust, for a court order may be needed to open your Safe Deposit Box.
2. IMPORTANT NAMES, ADDRESSES AND PHONE NUMBERS:
Employer______
Lawyer______
Accountant______
Financial Adviser or Stockbroker______
Insurance Agents______
______
- DATE THIS DOCUMENT WAS PREPARED______
Copies given to______
- IMPORTANT PAPERS....A big problem for anyone trying to wind up an estate can be simply finding all the necessary valuable papers. You can do your heirs, estate executor or trustee a favor by filling out this form and giving copies to your spouse, other relatives or those who will help in settling your estate, especially your lawyer.
MY IMPORTANT PAPERS ARE STORED IN THESE LOCATIONS:
(Residence, Fire Proof Safe, Study Desk, Filing Cabinet, Safe Deposit Box, etc.)
Will______
Spouse’s Will (Copy)______
LIving Trust______
VT Advance Directive for Health Care______
Powers of Attorney______
Other Trust Agreements______
Titles and Deeds to Real Estate______
Title Insurance______
Rental Property Records______
Loan or Mortgage Agreements______
Retirement Plan______
Keogh or IRA Plan______
Annuity Contracts______
List of Valuable Possessions______
List of Loaned Possessions______
Auto Ownership Records______
Boat Ownership Records______
Birth Certificate______
Children’s Birth Certificates______
Children’s Adoption Papers______
Marriage Certificate______
Divorce/Separation Papers______
Military Discharge Papers______
Citizenship Papers______
Burial or Cremation Instructions______
Spouse’s Burial Instructions______
Cemetery Plot Deed______
Life Insurance______
Heath Insurance______
Auto Insurance ______
Homeowners Insurance ______
Property and Casualty Insurance______
Disability Insurance______
Safe Combination (home)______
Safe Combination (office)______
Passwords for Computer______
Other Passwords______
Checkbooks______
Savings Accounts Passbooks______
Bank Statements______
Cancelled Checks______
Copies of Tax Returns (6 Years) ______
5. INSURANCE COVERAGES:
Life Insurance Coverages and Names of Companies and Addresses:
Health Insurance (Including Long Term Life Care) Coverages and Names of Companies and Addresses:
Homeowners Insurance and Name of Company and Address:
For insurance purposes, photographs of every room in my house, showing
possessions, especially such items as silver, etc, have been taken:
Yes______No______If Yes, these photographs are kept in safekeeping
at______off the premises, in case of fire.
Auto Insurance and Name of Company and Address:
6. RETIREMENT PLAN INFORMATION (Especially Plans with Death Benefits)
7. LIST OF CREDIT CARDS: (Kind and Card Numbers)
8. VALUABLE COLLECTIONS AND THEIR LOCATION: (Stamps, Coins, Dolls,
Baseball Cards, etc.)
9. SOURCES OF INCOME:
10. DEBTS AND LIABILITIES
11. LIST OF IMPORTANT PAYMENT DATES:
Insurance Premiums:Auto______
Homeowners______
Life______
Health______
Tax Returns:Federal______
State______
Rent or Mortgage:______
Car Payments:______
Licenses:Driver’s______
Car______
Business______
Installment Payments:______
Maturing Securities:______
______
______
12. LIST OF PERSONS TO CONTACT IN CASE OF SERIOUS INJURY OR DEATH: