Estate Planning & Administration
ESTATE PLANNING
Estate Planning speaks to properly preparing for how your assets will be managed or distributed on your demise (passing). It encapsulates Will Preparation, Trust, Power of Attorney and other application mechanisms as the law will allow. Clients may also consider transferring properties during their lifetime to their desired recipients and this is also effective Estate Planning.
Wills
A Will is a formal document which is usually called a “Last Will and Testament” and is usually signed by the Testator (person making the Will).
If you die without leaving a WIll, you will be classified as dying “intestate’ and in such cases, the law will dictate who has priority to handle your estate AND how your estate is distributed.
If you would like to have a say in how your estate is handled and distributed at the time of your death, having a Will is most critical.
Trust
A trust is a legal contract that allows another person (the ‘trustee’) to hold and manage property/assets for an individual usually called the ‘grantor’. This is usually done to preserve the asset for beneficiaries (whether they be institutions or individuals). You can have items such as money, physical assets or anything of value in a Trust. It is important to note that Trusts are usually helpful to hold property when the beneficiaries are minors and are not yet fit to handle the full inheritance of the asset. A Trust may also be useful to preserve and manage assets in a family even where the beneficiaries are adults.
Power of Attorney (POA)
A Power of Attorney is a legal document which comes with immense responsibility for the giver AND the receiver of the power.
A Power of Attorney is a legal document which grants another person (called the agent or attorney-in-fact) the authority to make decisions on behalf of the giver, whether it is regarding finances, healthcare or personal affairs. This can be used as a very effective Tool in Estate Planning as with age and time, many persons may not be able to manage all their affairs and responsibilities. The receiver of the power has the fiduciary duty to act in the best interest of the giver and to ensure that the objectives of the Power of Attorney are achieved (within the bounds of the law).
Undertaking this powerful tool is imperative as it can protect your interest and/or assets and can provide comfort and peace in case you become unable to manage your own affairs.
ESTATE ADMINISTRATION
“Estate Administration” refers to the actions required to guide and manage the Estate of a deceased individual. This process can be by way of “Probate Process” or “Administration Process”. The Probate process is where the deceased died leaving a Will and the Executor has conduct of the Estate Administration Process, whilst the Administration Process is where the deceased dies without leaving a Will OR, if a Will was left, the Executor is not the person acting for the Estate.
The duties of the Executor OR Administrator involves:-
- Identifying or Calling in the Assets
- Paying all just debts and funeral Expenses
- Closing Accounts/Policies where required
- Communicating with beneficiaries to ensure they are abreast of the Estate Administration Status and any hurdles to overcome
- Distributing Estate Property to the rightful beneficiaries- based on the Law, Will or Court Order.
The Estate Administration Process can be difficult to understand but, having an experienced attorney can simplify the process and walk you through from the commencement of the process to completion.
