by Colin Preseley

Created on: February 02, 2009   Last Updated: February 05, 2009

THE BEST ESTATE PLAN depends upon the value of the estate and how you wish to distribute it.

For example, a Living Trust allows you to control the distribution of your estate while you are living-hence the label, "LIVING TRUST". You can leave specific items of real and/or personal property to a specific person, called a "beneficiary", or you can divide the totallity of your estate by percentages and leave a certain percentage of the estate to one or more beneficiaries. This would undoubtedly entail the selling of assets by your Successor Trustee* (person appointed to administer your estate) after your passing.

If you choose to appoint a trustee in addition to yourself, which is very advisable, than that person becomes the Successor Trustee. You, as the primary trustee administer the estate while living, and the successor trustee assumes the duties of administering and finalizing the distribution of your estate after you pass. You can always amend the terms of your original trust by way of an "amendment" prior to your death should you choose to change your successor trustee, various beneficiaries, or simply change the percentage of distribution to beneficiaries, for example. This is a relatively simple proceedure.

The successor trustee can also administer to your health care, by way of your specific wishes, through the exection of a Mental Health Declaration and corresponding Power of Attorney, which gives the successor trustee the ability to carry out your wishes once a physician delares you to be incapacitated-unable to care for yourself in other words.

You might also wish to execute a separate Power of Attorney for purposes of administering your finances at your time of need, or simply because you trust the individual to do what is necessary on your behalf. Hence, you TRUST the person and therefoe appoint him or her your "TRUSTEE" or "SUCCESSOR TRUSTEE" Such an appointment is highly advisable.

Remember, you can appoint someone other than yourself to be the Trustee of your estate even while you are still living, but that person will have control over your estate even while you are alive. Should you appoint a Successor Trustee with a Durable Power of Attorney and a Power of Attorney over your finances however, he or she will control your estate only after you pass, or if should you become incapacitated as declared by your primary physician.

Things Needed at a Minimum:

1. Living Trust

2.Healthcare Declaration and corresponding Power of Attorney

3. General Power of Attorney over Finanaces

4. Pour Over Will*

*The pour over will is not complicated at all and merely states that should assets of yours' be discovered AFTER your death, they will be sold off by the Successor Trustee and distributed equally to your beneficiaries according to the percentage of the distribution of your estate that you left each beneficiary. This will be the job of the Successor Trustee to determine, who also by the way, submits a bill for his or her services, which is taken out of your estate after court approval.

Should a dispute arise after your passing between or among beneficiaries, they will have to hire their own lawyers at their expense. And remember, DO NOT leave anything to your lawyer. This would be highly scrutinized at best and would be unethical on the lawyer's part.

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