Oakland County MI Estate Planning Law Blog

Keeping wills locked away in a strongbox and forgotten may have unintended consequences. These documents must reflect current circumstances.

Marriage, divorce, birth of a child, death of relatives and other significant life events require review of the will. These may require the addition of new heirs, removal of existing heirs or changing the distribution of assets.

A will is an invaluable part of estate planning. However, trusts can take care of financial matters even before death and have other benefits such as faster distribution of assets, prompt payment of bills and confidentiality.

Income does not create the advantages of trusts. A revocable trust, for example, performs the same task as a will but avoids the requirement for probate court approval and hastens the distribution of money.

A power of attorney allows a trusted agent to step in to make health care or other important decisions. There are various ways to make this device more effective and provide better protection.

The authority granted in a power of attorney generally takes effect upon signing and ends when the person who executed the document, the principal, becomes incapacitated. Adding the durable classification allows the power of attorney to remain in effect if the principal becomes incapacitated. This allows a trusted individual, known as their attorney-in-fact, to make important decisions on the principal's behalf.

Pet care is a lifetime responsibility that does not end with the death of their owners. The Humane Society, however, claims that 100,000 are left homeless each year after their owners died. Planning and the creation of well-drafted trusts helps assure that a trusted family member or friend will care for pets and can prevent the situations where pets were sent to shelters or even euthanized.

Using a basic trust model, the owner may name a new caregiver for the pet who assumes this responsibility after the owner's death. The plan should also contain detailed care instructions and set aside money to continue to pay for ongoing expenses.