4 Components Of An Estate Plan And How A Miami Estate Planning Attorney Helps

By Author: Stam Bett
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The purpose of estate planning is enhancing and maintaining the financial security of your family, designating guardians for your minor children, reducing estate taxes and expenses for heirs and passing on your estate to the people you love. Unfortunately, many people believe they do not need estate planning from a Miami probate attorney because they don't feel their estate is great enough for taxation, although these plans are very broad and encompass many things.

Here are the four basic components of an estate plan and how a Miami estate planning attorney can help you protect the well-being of yourself and your family.

1. The Will
The will is the cornerstone of every estate plan. This is basically a legal declaration of your intentions for the disposition of your property when you die and everyone should have a will. A will allows you to do many things, including naming an executor, designating a guardian for your minor children, distributing your property and assets to beneficiaries, minimizing estate taxes for heirs and enjoying peace of mind.

If you die without a will, you die "intestate," ...
... which means the state will not decide who receives your assets and in what proportion. Your heirs will pay a great deal in taxes and your assets will be sold first to pay off any debts or taxes before property is distributed. A Miami estate planning attorney will avoid this by creating a legally enforceable will.

2. Power of Attorney
Power of attorney gives an individual you trust legal authority to act on your behalf. If you become incapacitated or ill, this allows someone else to make important financial decisions for you, including paying bills. Without a power of attorney, the court will decide who gets to make these decisions. This is another important component of estate planning and an area where a Miami probate attorney can help you. Florida has specific laws about how Powers of Attorney may be created and when they are effective. Power of attorney may be limited, with conditions or limitations, or general, which is very broad, as well as durable or non-durable.

3. Health Care Proxy
Your Miami probate attorney can also help you designate a health care proxy, which designates someone to act as your health care agent, making any necessary health care decisions for you and for your doctors. This component also affects you while you are still alive, if you become incapacitated or very ill.

4. Trust
Not all estate planning involves a trust, so you may want to discuss the benefits and drawbacks with a Miami probate attorney. A trust is basically a means of passing money and assets to heirs while avoiding many hassles, including court processing and the high taxes that come with an inheritance. A living trust goes into effect during your life, while a testamentary trust goes into effect after your death. Revocable trusts are those in which the trust maker, trustee and beneficiary are the same person and these are often used to plan for mental disability. Irrevocable trusts are used to move assets out of your name and down to your heirs to reduce the value of your estate for taxes.

While estate planning has only four basic components, for the most part, this is a very serious decision and an important one. Estate laws and probate law in the state of Florida is incredibly complex and many people make the mistake of using standard forms from the Internet in place of legal advice from someone who specializes in probate. Miami Beach and other areas of the state have specific rules and guidelines and, if your plan isn't prepared by a lawyer, you risk having it ruled as not legally enforceable, turning your estate over to the court system. Turn to an experienced Miami estate planning attorney to prepare for the inevitable, as well as the unexpected, and protect your family and children.

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