Estate Planning Techniques

The field of Estate Planning is all encompassing to allow individuals to meet their personal, financial and legal needs during and after their lifetime, benefiting themselves, their family and loved ones. The basics of Estate Planning should begin once a person is of legal age, to familiarize them of the concepts, and for long term well-being.

The following is a general outline of the major Estate Planning Documents, dealing with Health Care, Financial and Testamentary Issues. The outline concentrates on certain types of documents and is not conclusive. The names and types of documents may change from State to State, or upon the re-titling by a practitioner.

Legal documents should be modified to meet with an individual’s needs and desires, to protect them, their family and their loved ones. In most situations, a legal document can be revoked and/or modified if there is a change in circumstances, needs and desires.

The consequences of the failure to plan, may result in unnecessary Court proceedings, and State Law determining what should happen to you and your Estate, during and after your demise.

Health Care Documents
Name of the Document	Creator of the Document	When the Document is Used	Purpose of the Document	When Document Becomes Effective
Health Care Proxy	Principal	During the Lifetime of the Principal	A Proxy names an Agent (and Successor Agents) to make health care decisions for the principal, when the Principal is determined to be unable to make his or her own decision. A Proxy can give direction as to health care decisions and organ donation.	When the Principal’s physician determines that the Principal is unable to make his or her own medical decisions.
Living Will	Principal	During the Lifetime of the Principal	To provide direction to the Principal’s physician, family and Health Care Proxy as to medical treatment in an end of life situation. The Living Will may be modified in accordance with the Principal’s personal and religious desires.	The Living Will is effective at all times to states the principal’s desires; it is most commonly used in an end of life situation.
HIPAA Release	Principal	During the Lifetime of the Principal	To authorize the Principal’s medical professionals (i.e., doctors, laboratories, hospital) to speak with the Principal’s named Agent.	The HIPAA Release is effective at all times, unless limited by the Principal.

Financial Planning Documents
Name of the Document	Creator of the Document	When the Document is Used	Purpose of the Document	When Document Becomes Effective
General Power of Attorney	Principal	During the Lifetime of the Principal, except when the Principal is disabled or incapacitated.	To empower an Agent ("Attorney-In-Fact") to make financial decisions for the principal, for the powers as enumerated in the document.	The document is effective and can be used from the date of signing.
Durable Power of Attorney	Principal	During the Lifetime of the Principal, including when the Principal is disabled or incapacitated.	To empower an Agent ("Attorney-In-Fact") to make financial decisions for the principal, for the powers as enumerated in the document.	The document is effective and can be used from the date of signing.
Springing Power of Attorney	Principal	During the Lifetime of the Principal, once the Principal is determined to be unable to handle his/her affairs in a competent manner.	To empower an Agent ("Attorney-In-Fact") to make financial decisions for the principal, for the powers as enumerated in the document.	The document is effective from the date of signing, but the Agent can only act after the required certification.
Delegation of Power of Attorney	Attorney-In-Fact under Power of Attorney	During the lifetime of the Principal of the Power of Attorney, and the empowerment of the delegating Attorney-In-Fact.	To delegate any or all of the powers granted to the Agent ("Attorney-In-Fact") to make financial decisions for the principal, for the powers as enumerated in the document.	The document is effective from the date of signing, but the delegated Agent can only act based upon the provisions of the underlying Power of Attorney.

Estate Planning Documents
Last Will and Testament	Testator (for a man) Testatrix (for a woman)	After the Testator’s / Testatrix’s Demise	A Last Will and Testament is a document to set forth how the Testator / Testatrix desires to distribute his / her assets after demise. Testamentary Trusts within a Will can be used for tax planning purposes, minors, spendthrifts and to protect the inheritance of a person with special needs.	The document is effective from the date of signing, but is only proved after the person passes away.
Revocable Living Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	A Revocable Living Trust is designed for asset management during the Grantor’s lifetime, the avoidance of probate and the distribution of the Grantor’s Estate after his or her demise. A Revocable Living Trust does not protect assets if the Grantor applies for Medicaid (except for a homestead in limited situations). Testamentary Trusts within a Trust can be used for tax planning purposes, minors, spendthrifts and to protect the inheritance of a person with special needs.	The document is effective from the date of signing. A Living Trust needs to be funded so that the Trustee can have assets with which to start the desired planning.
Irrevocable Living Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	An Irrevocable Living Trust is designed for asset management during the Grantor’s lifetime, the avoidance of probate and the distribution of the Grantor’s Estate after his or her demise. An Irrevocable Living Trust can be used to (i) protect assets if the Grantor applies for Medicaid, (ii) minimize Estate taxes, (iii) guarantee and preserve an amount, (iv) protect an amount for a beneficiary with creditor problems. Testamentary Trusts within a Trust can be used for tax planning purposes, minors, spendthrifts and to protect the inheritance of a person with special needs.	The document is effective from the date of signing. A Living Trust needs to be funded so that the Trustee can have assets with which to start the desired planning.
Irrevocable Life Insurance Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	An Irrevocable Life Insurance Trust is used to hold title of a Life Insurance Policy, so that the value is excluded from the Grantor’s Estate for Estate Tax and creditor purposes. Testamentary Trusts within a Trust can be used for tax planning purposes, minors, spendthrifts and to protect the inheritance of a person with special needs.	The document is effective from the date of signing, but needs to be funded with a life insurance policy.
Unified Credit Shelter Trust	Testator, Testatrix, Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	This Trust is designed to hold and manage assets of a married individual, up to the unified credit. The Trust allows the individual and their spouse to maximize their unified credit, which is lost if all assets are passed to a surviving spouse under the unlimited marital deduction.	This Trust is effective when funded by outright inter-vivos or testamentary funding, or Disclaimer.
Minor’s Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	This Trust is frequently established by parents, grandparents & relatives of a minor person, when they desire to make a gift to the minor, but with contingencies. The contingencies range from the age at which the Minor is to receive the funds, the manner in which the funds may be used, and to protect the monies from spendthrifts & creditors. A Minor’s Trust can be established as a stand-alone Trust, or as a Sub-Trust under a Will, Revocable or Irrevocable Trust.	The document is effective from the date of signing. The Trust needs to be funded so that the Trustee can have assets with which to start the desired planning.
Spendthrift Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	A Spendthrift Trust is used to secure funds for the benefit of a person who has creditor problems, difficulty managing monies, potential divorce problems, etc. A Spendthrift Trust can be established as a stand-alone Trust, or as a Sub-Trust under a Will, Revocable or Irrevocable Trust.	The document is effective from the date of signing. A Special Needs Trust needs to be funded so that the Trustee can have assets with which to start the desired planning.
Special Needs Trust; Supple-mental Needs Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	A Special Needs Trust is designed to hold assets for a person with a severe and chronic or persistent disability, or anyone who may have special needs. A Special Needs Trust can be established as a stand-alone Trust, or as a Sub-Trust under a Will, Revocable (except for spouse-to-spouse) or Irrevocable Trust (except for spouse-to-spouse). A Special Needs Trust can be set up for a loved one; if someone wants a Special Needs Trust for themselves with their own funds, then the Trust must be created by a parent, grandparent, Court or Guardian. A Self-Settled Special Needs Trust must have a pay-back provision.	The document is effective from the date of signing. A Special Needs Trust needs to be funded so that the Trustee can have assets with which to start the desired planning.
Pet Trust	Grantor, Settlor, Trustor, Creator	During and after the Lifetime of the Grantor	A Pet Trust can be established to set aside funds to care for one’s pets if the person becomes incapable of providing such care, or passes away. A Pet Trust can be established as a stand-alone Trust, or as a Sub-Trust under a Will, Revocable or Irrevocable Trust.	The document is effective from the date of signing. A Living Trust needs to be funded so that the Trustee can have assets with which to start the desired planning.
Burial and Funeral Designation	Principal	After the Principal's Demise	New York Law dictates a priority order of persons who may handle a decedent's Burial and Funeral Arrangements. To confirm or override the order, and/or to state one's desires, written instructions conforming to the law must be set forth.	The documents is effective from the date of signing, but may only be used after the Principal passes away.
DISCLAIMER: The above is merely informational and not legal advice. It is based upon New York and Federal Law. You should contact an Estate Planning and Elder Law Attorney for any changes or updates in the Law. Attorney referrals may be obtained from one's State and local Bar Associations. Future changes in Law may render the above information inaccurate.

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