Estate Planning Documents

Estate planning involves both emotional and financial considerations. Unfortunately, the discomfort many feel when they consider issues relating to death and dying causes many to delay estate planning to avoid facing the difficult questions that arise from it. Others avoid the issue because they believe their estates are too small to matter. Due to these factors, over half of families do not possess even basic Wills.

An estate plan makes everyone's life easier. The person who creates the plan knows their family is taken care of, the family avoids the possibility of fighting, and the government does not become involved. Before selecting an estate planning attorney, a good first step is considering what should be accomplished with the estate plan.

Initiating a discussion about everyone’s interests and preferences helps clarify which actions should be pursued or avoided. A great example of something that should be considered is whether certain property or responsibility should go to certain individuals. These sometimes tough conversations will help to develop a list of critical issues that should be addressed and goals that you would like to accomplish.

Wyoming's legislature has worked hard to draft comprehensive and forward-thinking trust laws. The result is most estate plans in Wyoming are based on Trusts, not Wills.

Estate planning is about how we plan for the unexpected. It's not only about planning for death, it's also about planning for disability or incapacity.

Estate planning ensures that our wishes are honored after we pass away or when something unexpected happens. Estate planning will control how your assets are to be distributed to your heirs, but it will make sure that someone you love and trust has the authority to make healthcare decisions on your behalf when you can't make them for yourself.

Without a comprehensive estate plan, when you become incapacitated, the court may have to appoint a conservator or guardian to handle your affairs, which can be extremely stressful for your loved ones and potentially very expensive.

In addition, if you die without a sound estate plan in place, your assets will be distributed by the state's default distribution rules, which will involve probate and may result in your assets being distributed to people you don't want to receive them, by someone you don't trust.

A sound estate plan will allow you to:

• Provide for yourself and your loved ones through a period of disability or incapacity;
• Leave what you want, to who you want, in the way you want;
• Avoid probate and minimize unnecessary fees and court costs; and
• Memorialize your legacy.

Any sound estate plan will include the following most commonly used estate planning documents:

• Will or Pour Over Will
• Revocable Living Trust
• Advanced Medical Directive
• Durable Financial Power of Attorney

Will or Pour-Over Will

A Will is a legal document that takes effect after you pass away and essentially tells the probate court how you wish your assets to be distributed and appoints someone (your executor or personal representative) to carry out these wishes.

A Pour-Over Will is a simple Will that works in conjunction with a Living Trust. It indicates that you have a Trust and directs any assets that were not transferred into your Trust before you passed away to be transferred into that Trust upon your death.

Any assets that are not transferred to your Trust will be subject to probate. A Pour-Over Will acts as a safety net but is not a substitute for transferring assets into your Trust while you are alive and able.

Living Trust

A Living Trust is a document that contains a set of instructions for how you would like your assets to be managed and distributed after your death, as well as who and what kind of decisions can be made with regard to your assets, finances, and health care when you are alive but incapacitated.

A Living Trust works much like a Will, except it allows you to establish a more comprehensive estate plan wherein you are able to:

• Dictate to whom and how your assets will be distributed;
• Provide for minor children or special needs loved ones; and
• Appoint someone who will step in and manage the trust when you become incapacitated or pass away.

However, perhaps the most important thing about a Living Trust is that it helps avoid probate. Probate is the legal process of finalizing your estate after you die. Probate is a public process that can be both lengthy and expensive and, in most cases, should be avoided if possible.

With a Living Trust, many of your assets are transferred into the Trust during your lifetime and passed directly to your surviving family members without delay or the expense of probate.

Advance Medical Directive

A Medical Directive, also known as an Advance Health Care Directive or Medical Power of Attorney, states your wishes regarding your medical and end-of-life care and appoints an individual to carry out those wishes when you cannot otherwise communicate them yourself.

Durable Financial Power of Attorney

A Financial or General Power of Attorney allows you to authorize someone to manage your finances and property when you are incapacitated.

To summarize, the most common estate planning documents include a Will or Pour-Over Will, a Living Trust, a Medical Directive, and a Financial Power of Attorney. Whether you are just starting out in life or have accumulated significant assets, having these essential estate planning documents in place will enable you to dictate what happens to those assets when you die or the unexpected happens and to appoint people who you trust to handle your affairs when you are unable to handle them yourself.

The laws governing estate planning and probate avoidance vary slightly from state to state. Estate planning strategies vary depending on individual circumstances. For more detailed information about estate planning in Wyoming, consult with an experienced Wyoming estate planning attorney who can advise you on the most effective estate planning options for Wyoming residents.

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