Boca Raton Estate Planning, Probate & Real Estate Blog

It is important to plan for the ideal future, but to also have contingencies in place if (and when) the story deviates from the desired narrative. This is where estate planning comes in – it enables individuals and couples to plan for such eventualities as death as well as such potential issues as illness and incapacitation. While many assume that estate planning is for families with complex estates, it can be useful to nearly every family for avoiding potential legal issues, unnecessary expenses and other important matters.

It was about a year ago that we outlined three common estate planning mistakes. These were:

Estate planning involves a wide variety of options. Of course, one starts with the basics of drafting a will with the help of an attorney with experience in handling estate law issues. During those initial consultations, it may come to light that a revocable trust is a good estate planning tool to address the needs of the client.

Also known as a living trust, revocable trusts offer many benefits, most notably giving the person who establishes the trust (the grantor) the ability to modify or revoke the trust up until the day he or she dies. Once the grantor is deceased, the trust shifts to irrevocable to expressly carry out the goals and guidelines it was set up for.

Many people will mourn the loss of a loved one, but they often will take solace if the decedent bequests or gifts money or assets to them. Sometimes, however, these thoughtful gestures are actually more trouble for the prospective beneficiary than if they had never received them. In these circumstances, renunciation of the gift may be the smart course of action. This can be done for any reason but is often done for tax purposes.

The renunciation of a gift or bequest is also called “disclaiming a gift," and the refusal is called a “disclaimer.” If an individual disclaims a gift, they do not get to pick who is to receive the gift. Instead, it is as if the initial beneficiary did not exist and it passes on to the next beneficiary in line.

Assigning power of attorney duties in an estate plan is a wise decision to ensure someone you trust has authority to make financial decisions on your behalf. However, circumstances change over time, and there may be reason to reassess your power of attorney appointments.

For instance, you may decide to revoke or change the designated agent as your power of attorney at some point. You might decide to do so because of changes in your relationship with your appointed agent, changes in your wishes or other conditions that warrant revisiting this appointment. If you wish to revoke a power of attorney, there are some things you should know.