Estate planning is important for people of all ages. Whether starting a family through marriage, welcoming a new child, making a life transition like separation or divorce, or simply getting older, an estate plan should correctly reflect individual desires. This includes how an estate should be managed and disbursed in case of death and who should make important medical and day-to-day decisions on behalf of the individual if they cannot do so themselves. The estate planning attorneys at Stiles Ewing Powers can help customize an estate plan for specific needs and desires and draft the documents necessary to implement the plans.

Important Estate Planning Documents Everyone Should Have

Every adult should have the following estate planning documents:

  1. Last Will and Testament: This document becomes effective upon death. A properly prepared Last Will and Testament (sometimes just called a Will) manages and distributes the estate according to the law and stated desires. This includes appointing an executor responsible for the administration of the estate after death, paying debts owed at the time of death and medical and funeral expenses incurred around the time of death, appointing guardians and conservators for any minor children, and distributing assets to the people or charitable causes the individual wishes to support. A Will is intended to wrap up personal and financial matters in an organized way to assist loved ones after passing.
  2. General Power of Attorney: This document becomes effective upon signing and remains in effect until it is revoked or the individual dies. A General Power of Attorney grants authority to a trusted person (called an Attorney-in-Fact) to handle important matters on behalf of the individual if they are not able to handle those matters themselves. Most of these decisions involve financial matters, including managing financial accounts and transactions or addressing legal, real estate, or tax matters. Though a General Power of Attorney is most often used when a person becomes incapacitated (unable to make informed decisions for themselves), it can also be used if a person is simply unavailable to handle the matter at that time, such as while traveling. A General Power of Attorney ensures that someone is always able to make important decisions and take necessary actions on behalf of the individual when they otherwise cannot.
  3. Advance Medical Directive: Also called a “Medical Power of Attorney” or a “Living Will.” An Advance Medical Directive goes into effect when the individual becomes incapacitated and cannot make medical decisions for themselves. An Advance Medical Directive will appoint a trusted person (called an Agent) to make medical decisions on behalf of the individual.

Most Advance Medical Directives grant broad decision-making powers to the Agent based on their understanding of the individual’s desires for medical treatment and end-of-life decisions. The Agent will be able to review medical records, instruct medical providers, and make medical decisions, including the ultimate decision to terminate life support if the individual has a terminal illness or injury. An Advance Medical Directive helps ensure that medical providers have a trusted person who can make medical decisions for their patients when time matters most.

How to Avoid Probate 

Probate is the process of reporting, managing, and administering the assets and debts of a deceased person. It is a process overseen in Virginia by a city or county’s Commissioner of Accounts, and sometimes the Circuit Court if the estate administration becomes contested. Probate involves filing substantial paperwork and paying probate administration fees, which can be costly depending on the complexity of the probate estate. It is best to avoid probate as much as possible by planning the administration of the estate in a streamlined, private, and cost-effective manner.

Proper planning can substantially reduce, if not eliminate entirely, the treatment of assets as probate assets and thus limit the extent to which the estate is subject to the probate process. This may include putting assets into a trust, assigning beneficiaries as “payable-on-death,” or preparing “transfer-on-death” deeds or assignments. The attorneys at Stiles Ewing Powers can guide clients on potential ways to keep many assets out of probate, expedite the probate process, or even avoid it altogether.

Modifying Estate Documents During Transitions

Times of transition, such as separation and divorce, are important times to review and update an estate plan. Revising estate planning in connection with a divorce can avoid potential problems in the future. For example, an individual may not want an ex-spouse to serve as an executor, trustee, attorney-in-fact, or agent for making medical decisions. There may be a desire to distribute assets entirely differently as a result of restructuring the family. Ensuring an ex-spouse does not receive assets or control the children’s inheritance may be important. 

The estate planning lawyers at Stiles Ewing Powers use their extensive experience in divorce representation to help clients craft their estate plans to meet their needs and accomplish their estate planning goals.

Contact the attorneys at Stiles Ewing Powers today to discuss the preparation or amendment of your estate planning documents.