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Ways an Estate Can Be Distributed
Intestate: The State distributes your estate in the following order: spouse, children, descendants of children, parents, brothers and sisters.
Will: A will is no more than your letter to a probate judge telling how you want your estate distributed.
Trust: A separate taxable entity which can hold an individual's assets.
There are two broad categories of trusts:
A. Living trusts are created and funded during the life of the individuals and do not have to go through probate.
B. Testamentary trusts are established upon an individual's death and must pass through probate.
Following are topics which should be considered in your estate planning:
Will
Revocable Living Trust - Places your assets in a trust to provide professional management or to avoid the time, expense, and publicity of the probate process.
Wisconsin Basic Power of Attorney for Finances and Property - Gives someone you appoint the power to manage your assets if you become incapacitated. If you do not prepare a Power of Attorney for Finances and Property while you are healthy, then only a court can appoint someone to manage your assets if you are unable to do so.
Power of Attorney for Health Care - Appoints another person as your agent to make health care decisions when you are no longer capable of making them yourself.
Living Will (Declaration to Physicians) - A declaration that your dying should not be artificially prolonged if in a terminal condition. This written document allows a person to state in advance his/her wishes regarding the use of life-sustaining procedures in the event of terminal illness or injury.
The Instruction Letter - The letter in which you explain necessary steps to be taken such as locating the will, calling your attorney, notifying various friends and business associates. The letter or an accompanying document should contain the name, address, and phone number of your attorney, insurance agent, financial planner, and others who must be contacted to settle the estate. If you have a preference regarding funeral arrangements or other ceremonies, this should be explained in the instructional letter. It's also a good place for any personal messages or explanations you may want to make. Nothing you put in the letter is legally binding, but it is your last chance to express your wishes to survivors.