There are two broad catagories of documents in Estate Planning. There are inter vivos documents and testamentary documents. Inter vivos documents are documents that take effect when one is living. These can take immediate effect or they can be "springing", meaning that they become effective on the happening of a certain event, such as one's disability.
Testamentary documents are those which only take effect upon one's death.
Historically, estate planning was considered planning for events that occured after one's death. The most common estate planning document was a Last Will and Testament. Since your Last Will and Testament has absolutely no effect until after your death, it is a testamentary document.
The Last Will and Testament provides instructions that the trust should be established after one's death.
These are typically used when younger families plan their estates. A Mother and Father will provide that upon their death their children will receive all of their estate in equal shares.
As the Last Will and Testament provides for an appointment of a guardian of the children, it will likewise provide for the creation of the trust in which the family's assets are kept for the care of the children until they reach a certain age.
Estate Planning not only contemplates the distribution of one's estate following their death but also plans for certain events to during life, particularly upon one's disability.
For many people, completing a Health Care Power Of Attorney and a Property Power Of Attorney is as important as a Last Will and Testament. These powers of attorney carry out your wishes while you are still alive.
The Living trust has become an increasingly popular estate planning tool. They take effect immediately upon being signed and are therefore inter vivos documents.
If you live in Michigan and need experienced estate planning help, contact Michael Einheuser for a free consultation. Michael helps families in Bingham Farms, Troy, Farmington Hills, Rochester Hills, Southfield, West Bloomfield Township, Bloomfield Township, and the surrounding Michigan areas.
Schedule your Free Consultation today: (248) 398-4665.