{"id":337066,"date":"2021-09-09T22:02:00","date_gmt":"2021-09-09T19:02:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/marketwatch-and-learn-6-essential-estate-planning-documents-every-adult-needs\/"},"modified":"2021-09-09T22:02:00","modified_gmt":"2021-09-09T19:02:00","slug":"marketwatch-and-learn-6-essential-estate-planning-documents-every-adult-needs","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/marketwatch-and-learn-6-essential-estate-planning-documents-every-adult-needs\/","title":{"rendered":"#MarketWatch and Learn: 6 essential estate planning documents every adult needs"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41aed03dfc3\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41aed03dfc3\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-and-learn-6-essential-estate-planning-documents-every-adult-needs\/#Having_a_will_is_for_everyone_%E2%80%94_not_just_the_super_rich\" >Having a will is for everyone \u2014 not just the super rich<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/marketwatch-and-learn-6-essential-estate-planning-documents-every-adult-needs\/#Robert_Powell\" >Robert Powell<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#MarketWatch and Learn: 6 essential estate planning documents every adult needs<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Having_a_will_is_for_everyone_%E2%80%94_not_just_the_super_rich\"><\/span>\n  Having a will is for everyone \u2014 not just the super rich<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\" role=\"region\" aria-label=\"article body\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000399995\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000399995\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Many people might think that estate planning isn\u2019t for them.<\/p>\n<p> They don\u2019t have wealth like Bill Gates or Jeff Bezos, they don\u2019t think of their belongings as an \u201cestate.\u201d And they might not even have much in the way of assets save an insurance policy, a retirement account or two, and maybe a house.<\/p>\n<div class=\"paywall\">\n       But no matter how much or how little you possess, there are six estate planning documents that every adult should have.<\/p>\n<p>Read: 12 questions you should ask your parents before it\u2019s too late<\/p>\n<p><strong>Durable power of attorney<\/strong><\/p>\n<p>Your durable power of attorney permits you to choose who will make financial and legal decisions should you ever become incapacitated, said Harry Margolis, author of<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.margolisbloom.com\/get-your-ducks-in-a-row\" class=\"icon none\"> Get Your Ducks in a Row: The Baby Boomers Guide to Estate Planning<\/a> and founder of the<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.elderlawanswers.com\/\" class=\"icon none\"> ElderLawAnswers<\/a> website.<\/p>\n<p>\u201cThis can save considerable trouble, avoiding family disputes and financial and legal roadblocks,\u201d he said. \u201cWithout it, there may be no one to pay your bills and make decisions for you in the event of incapacity. Plus, family members may have to go to court to get <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointed conservator, a time-consuming, expensive and cumbersome process. And usually, these added burdens come at the worst time when they are already having to spend a lot of time caring for you and dealing with healthcare issues.\u201d<\/p>\n<p>A durable financial power of attorney can either be effective im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely or a spring power of attorney, which means it is only effective upon incapacity, said Michael Burns, an attorney with Scroggin &amp; Burns. State laws vary on this as some states, such as Florida, require the financial power of attorney to be effective immediately, he said.<\/p>\n<p>Read: Smart withdrawals can reduce your taxes and extend your next egg in retirement<\/p>\n<p><strong>Health care directive or medical power of attorney<\/strong><\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Like a durable power of attorney, a healthcare proxy or durable power of attorney for healthcare allows you to appoint an agent to make healthcare decisions when you are not able to do so, said Margolis.<\/p>\n<p>\u201cIt also permits your agent to communicate with healthcare providers,\u201d he said. \u201cAnd, depending on your state, without this document there may be no one able to step in or state law may choose someone other than who you would want to take care of you.\u201d<\/p>\n<p>In the absence of a healthcare directive, Margolis said your family may have to go to court to have someone appointed as guardian with the same costs and delays as having a conservator appointed for financial and legal matters.\u00a0<\/p>\n<p>\u201cUltimately, choosing your agent and providing him or her with guidance could well save your family time, trouble, and expense,\u201d he said.<\/p>\n<p>Another type of advance directive necessary is a living will, which is where individuals can provide guidance as to end-of-life decisions, Burns said.<\/p>\n<p>Read: 10 ways to improve your health and live longer<\/p>\n<p><strong>Will<\/strong><\/p>\n<p>Your will disposes of probate assets, assets that are owned individually and that do not have a beneficiary designation, said Burns. \u201cThis is a common misconception for the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> public as many individuals believe the will governs all assets,\u201d he said.<\/p>\n<p>According to Burns, the will names an individual to administer the estate \u2014 often referred to as the executor or personal representative; dictates how the probate assets are distributed; provides for simplified administration of the estate; and, where applicable, names a guardian for any minor children.\u00a0<\/p>\n<p>\u201cYou choosing that person\u2014the guardian or guardians\u2014rather than leaving it up to chance can prevent disputes and make sure the right person fills this role,\u201d said Margolis.<\/p>\n<p>In addition, the executor or personal representative pays your outstanding bills, collects anything you might be owed, files your final tax return, prepares an estate tax return, if necessary, said Margolis.<\/p>\n<p>What\u2019s more, as part of the will, Burns said some states permit a tangible personal property memorandum, which is a method for an individual to dispose of tangible personal property without the formalities of a will signing, which is often two witnesses and a notary public though it varies by state. \u201cThis helps to minimize conflict among family members,\u201d he said.\u00a0<\/p>\n<p><strong>Revocable trust<\/strong><\/p>\n<p>Depending on state law, probate can be a time-consuming and expensive process, said Burns. \u201cThe idea of the revocable trust, or what is also called a living trust, is that to the extent the revocable trust is funded, it can avoid probate upon passing,\u201d he said.<\/p>\n<p>Plus, the grantor may amend or revoke the trust during his or her lifetime, said Burns.<\/p>\n<p>According to Margolis, while you\u2019re alive and competent, you can serve as your own trustee. You can also name a co-trustee or successor trustee to step in if you become incapacitate or just want assistance.<\/p>\n<p>The main benefits, according to Burns, are avoiding probate; privacy (the will is a public document whereas the revocable trust is generally private); and disability management. \u201cThis is especially important where there is out-of-state real estate that is owned individually,\u201d he said. Out-of-state real estate would require probate not only in the home state but also in the state where the real estate is owned) or there is a small business that would require immediate attention, said Burns.<\/p>\n<p>A revocable trust essentially does what a durable power of attorney does but more easily, said Margolis. \u201cIt\u2019s easier for a successor trustee to step in and manage a trust than it is for an agent under a durable power of attorney to step in and manage your finances because many financial institutions put up roadblocks to honoring durable powers of attorney,\u201d he said.<\/p>\n<p>Margolis also noted another benefit of a revocable trust. \u201cWhile a guardianship for a minor child ends at age 18, you can set out whatever ground rules you choose for distributions to or on behalf of your children,\u201d he said. \u201cMany parents keep funds in trust for their children completely until age 25, and often after that making partial distributions over a number of years. During the intervening years, the trustee will spend the trust funds for the children as needed but won\u2019t distribute their shares outright.\u201d<\/p>\n<p>Also of note, many state courts are experiencing significant delays due to COVID. \u201cAs a result, the use of a revocable trust is more prevalent than ever,\u201d said Burns.\u00a0<\/p>\n<p><strong>Beneficiary designations<\/strong><\/p>\n<p>Retirement accounts and life insurance death benefits are distributed not through a will but by something called a beneficiary designation.<\/p>\n<p>And as part of your estate plan, it\u2019s important to review and update your retirement account and life insurance policy beneficiary designations at least annually, and certainly when life events\u2014death, divorce, remarriage and the like \u2014 occur. \u201cOutdated or missing beneficiary designations are one of the biggest mistakes I see in my practice,\u201d said Burns. \u201cEvery estate planning attorney has stories of a divorced former spouse being entitled to life insurance proceeds from the deceased individual due to a failure to change the designation.\u201d<\/p>\n<p>Burns also noted for retirement accounts, the beneficiary designation will have important implications from a tax standpoint under the SECURE Act. Under the SECURE Act, some beneficiaries will no longer be able to distribute the retirement account assets over their lifetime.<\/p>\n<p><strong>Guidance letter to family<\/strong><\/p>\n<p>Burns also recommended that individuals prepare a guidance letter to the family regarding everything from funeral arrangements to assets to family memories and\/or future guidance. \u201cFamily conflict generally stems from each family member having a different idea of \u2018what Dad would have wanted,\u2019\u201d he said. \u201cIf the individual provides clear guidance, this can often be avoided.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Robert Powell\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/robert-powell\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/RJPIII\",\"text\":\"@RJPIII\"},{\"type\":\"link\",\"icon\":\"facebook\",\"url\":\"https:\/\/facebook.com\/pages\/Robert-Powell-Editor-Retirement-Weekly\/102847546436122\",\"text\":\"pages\/Robert-Powell-Editor-Retirement-Weekly\/102847546436122\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:rjpiii@comcast.net\",\"text\":\"rjpiii@comcast.net\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\" aria-label=\"links to  author page\"><span class=\"ez-toc-section\" id=\"Robert_Powell\"><\/span>Robert Powell<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-761A-7BD91D4DE653%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#MarketWatch and Learn: 6 essential estate planning documents every adult needs&#8221; Having a will is for everyone \u2014 not just the super rich Many people might think that estate planning isn\u2019t for them. They don\u2019t have wealth like Bill Gates or Jeff Bezos, they don\u2019t think of their belongings as an \u201cestate.\u201d And they might&#8230;<\/p>\n","protected":false},"author":1,"featured_media":337067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-337066","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/337066","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=337066"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/337066\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/337067"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=337066"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=337066"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=337066"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}