Signing a will or a trust is perhaps the best way to provide stability and predictability for your family in the event of your passing. If you're considering having a will prepared, this article outlines the basic planning process and documents involved.
Documents
The documents that will be prepared typically include a last will and testament, a general power of attorney, a healthcare power of attorney (or living will), and a HIPAA waiver authorizing the release of medical information to your agents. The last will and testament is of course the foundational document that will be probated after your passing. Your will determines who will receive your property or if your assets should be "poured over" into a trust to avoid the probate process altogether, and it determines who you want to administer your estate or trust.
Depending on your circumstances, there are a number of ancillary documents that may be provided. For example, testators (the person signing the will) are usually given a tangible personal property memorandum that is referenced by the will or the trust. The purpose of a tangible personal property memorandum is to list gifts of personal property (such as heirlooms, antiques, jewelry, guns, etc.) and they allow the testator to take their time in determining such gifts, as the memo does not have to be completed at the time the will is signed.
Powers of attorney are used to identify who should make decisions on your behalf if you become unable to make decisions for yourself (perhaps through mental decline, or a work-related accident). A healthcare power will of course enable someone to make healthcare related decisions for you, and a general power will enable someone to make financial, property, tax, and other general decisions on your behalf. Absent powers of attorney, your family members may have to pursue guardianship or conservatorship proceedings to secure the power to make decisions for you. As a result, well-crafted powers of attorney can save your family considerable time and expense.
Process
The estate planning process is simple. Often it involves a preliminary meeting with an estate planner so they can familiarize themselves with your family structure, your assets, and your wishes. Sometimes questionnaires can be provided ahead of a preliminary meeting.
Drafts of the above-described documents will then be prepared and sent to you for review and editing at your convenience. Sometimes, additional meetings are needed depending on the complexity of your assets and wishes. After all documents are finalized to your satisfaction, they can be signed in a signing ceremony. New Mexico law requires wills to be witnessed by two individuals and notarized.
Surprisingly, almost 70% of people die without preparing a will. The process, however, is not complicated, and the time and investment required to plan your estate is well worth the cost. Estate planning isn't only for high-net worth individuals and families. Even if you don't own much, there's a good chance that you won't like New Mexico's intestacy laws - the laws that determine how your property is distributed if you die without a will. Furthermore, a will is the only tool you can use to declare who should care for your children if you pass away while they are still minors. Talk to a Lighthouse estate planner (without fearing consultation fees) and help your family stay prepared.
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