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What is Estate Planning?
Estate
planning refers to the process of planning for the distribution
of a person’s assets, after payment of debts and claims,
among his/her intended beneficiaries. If handled properly,
the planning process includes a wide variety of decisions
including, but not limited to:
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determining how debts and claims will be paid (i.e., charging
them against certain properties but not others);
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making gifts (called “devises”) of specific properties
to designated persons (called “devisees”). Another
term used to describe those who inherit property is “heirs.”
The term applies to persons inheriting property from a decedent
who dies without a Will (called “intestacy”) or when
a Will does not dispose of all of a decedent’s property.
Those who receive distributions from a trust are called “beneficiaries;”
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naming the devisees of the balance of the estate (called the “residue”);
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creating trusts (called “testamentary trusts”) to
manage property for minors or incapacitated persons;
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naming the person or persons to handle the administration of the
estate (called a “personal representative”), and alternates
or successors;
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naming the trustee or trustees of any trusts created in the Will;
- describing
the powers of the personal representative;
- appointing
guardians for minors or incapacitated persons; and
- designating
the personal representative to handle the administration of property
owned in another jurisdiction.
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