This document discusses various estate planning tools including wills, trusts, powers of attorney, and advance directives. A will allows you to choose who inherits your property, cares for children, and manages your estate. A testamentary trust can protect and manage assets for children. Advance directives express wishes for end-of-life medical care. Powers of attorney designate someone to handle finances if disabled. Living trusts avoid probate but not taxes, and allow management of assets if disabled. Estate planning services are offered at a fixed fee.

1. Fundamentals of
Estate Planning
Law Offices of
Steven M. Basche, LLC
www.legaladviceforlife.com

2. WHY YOU NEED A WILL?
You choose:
• Who gets your property
• Who cares for your children
(guardian)
• Who is in charge of your estate
(executor)
Without a will, you get the
government’s will, and you may
not like it

3. WHY YOU MIGHT WANT A
TESTAMENTARY TRUST
• Manage assets for children or other
dependents
• Ensure that if you and your spouse die
at the same time, your money will
managed for your children’s or
dependent’s benefit
• Manage and protect the assets left to
your children or dependents, even after
they turn 18

4. ADVANCED DIRECTIVES

5. Advance Directives
• Living Will
• Appointment of a health care
representative
• Designation of a conservator of the
person for future incapacity
• Document of anatomical gift

6. Living Will
• A document that states what medical
actions you would like taken if you can’t
express your wishes
• Generally, advance directives deal with
end-of-life decisions, such as providing
or withholding life support or medical
care in the case of traumatic injury or
advanced disease

7. Appointment of
Health Care Representative
• You choose who you want to make
health care decisions if you can’t
• Same person makes end of life
decisions
• Your physician’s role
• Include consultation with other family
members

8. Advance Designation
of Conservator
• Your choice of who you would want the
probate court to appoint to as
Conservator of the Person if a petition is
filed in court
Anatomical Gift
• Expresses your wishes regarding organ
donation

9. Why use
advance directives?
• Give you the power of choice.
• Advance directives ensure that your
wishes regarding end-of-life decisions
are followed
• End-of-life decisions are very emotional
and difficult for family and friends, and
you might want to alleviate this burden
by using an advance directive
• Eliminate any question about your
specific wishes

10. POWER OF ATTORNEY

11. What is a
power of attorney?
• A general power of attorney gives your
agent (“attorney-in-fact”) the right to
act on your behalf
• You can tailor a power of attorney to
provide that it only comes into effect
upon disability (but there may be
problems with that).

12. Why use
powers of attorney?
• Avoids the need for have a court
appoint either a conservator of the
person or a conservator of the estate in
the case of disability
• You designate the person you want to
be responsible for making decisions
regarding your assets, your residence,
and financial affairs

13. LIVING TRUSTS

14. What is a
Living Trust?
• A “legal box” that you create for the benefit of
another
• The Trustee is the boss of the box
• You are usually both the “boss of the box” and
the beneficiary during your lifetime
• You can revoke or amend the trust
• Any assets in the box do not go through probate
• However, you still have to pay probate fees on
those assets.

15. Tax implications
• Living trusts do NOT avoid taxes
• The income from the trust is included
on your income tax returns during your
lifetime, and the principal (assets of the
trust) are included in your estate for
federal estate tax purposes
• The trust is treated as if it does not
exist for Federal income tax purposes

16. Living trusts
and probate
• If you transfer all of your property to a
living trust, you can potentially avoid
probate*
• However, living trusts are usually more
expensive to prepare than a will

17. Asset protection?
• During your lifetime, assets held in your
living trust are still subject to claims by
your creditors
• You can add “spendthrift” provisions
• You can include “bloodline” provisions

18. Privacy
• Wills become part of the public record in
probate
• Living trusts do not

19. Disability Protection
• A living trust is the best way to make
sure that if you are disabled, your
successor trustee (often your spouse)
can take control of your assets quickly
and easily
• Banks are getting wary of accepting
powers of attorney

20. Estate Taxes
• Estates are potentially subject to a federal and
Connecticut estate tax upon death of any individual
• This year the Federal exemption amount is
$5,000,000
• Next year it goes down to $1,000,000 unless
Congress acts
• The Connecticut exemption amount is $2,000,000 per
person
• Unlimited exemption for assets passed to your spouse
• Same sex couples need special estate planning

21. Law Offices of Steven M. Basche, LLC
Fixed Fee Estate Planning
• Wills
• Trusts
• Powers of Attorney
• Advance Directives
• Health Care Proxies
• Special Needs Trusts
Mention code CEA8712 and save 10%
2389 Main Street, Glastonbury, CT 06033
860-659-5582
www.LegalAdviceForLife.com