Schneiter Law, PLLC

ESTATE PLANNING DEVICES

DEVICES

DESCRIPTION

SIMPLE WILL

Used mainly for persons whose estates are not subject to the federal estate tax.
- Taxable Estate less than $3,500,000.00.
Does not include any trust provisions except as contingency.
Client who wishes to leave the residue, after specific bequests and devises, outright to surviving spouse or to spouse's trust if spouse predeceases client.
Widower client who wishes to leave the residue, after specific bequests and devises, outright to descendants, ancestors, or anyone else.

LONG FORM WILL

Used for persons whose estates may be subject to the federal estate tax.
Provides the greatest flexibility in estate planning.
Provides for the creation of trusts at the death of the client, namely Marital Deduction Trusts, Qualified Terminable Interest Trusts, Reverse Qualified Terminable Interest Trusts, Residuary/Generation Skipping Transfer Tax Trusts, Nonexempt Generation Skipping Transfer Tax Trusts, etc.

POUR-OVER WILL

Used for client whose estate is contained in a revocable trust.
Client wishes to leave the residue, after specific bequests and devises, to the trustee of the revocable trust as administered by trust agreement terms.

REVOCABLE (INTER VIVOS, LIVING) TRUST

A trust created during the life of the settlor/client which can be revoked (cancelled) as long as the settlor/client is living.
As a trust, provides for the greatest flexibility in estate planning for married persons with children.
Trustee is usually either the settlor/client or an independent third party.
Initial beneficiaries are normally the settlor/client and spouse with the residuary to the children upon the death of both settlor/client and spouse.
Normally becomes irrevocable on the death of the settlor/client and spouse.
Revocable Trusts may include provisions providing for Marital Deduction Trusts, Qualified Terminable Interest Trusts, Reverse Qualified Terminable Interest Trusts, Residuary/Generation Skipping Transfer Tax Trusts, Nonexempt Generation Skipping Transfer Tax Trusts, etc.

IRREVOCABLE TRUST

A trust created during the life of the settlor/client which cannot be revoked by the settlor/client.
Irrevocable Trusts typically include Long Term Generation Skipping Transfer Tax (Dynasty) Trusts, Crummey Trusts/Irrevocable Life Insurance Trusts, I.R.C. § 2503(c) Trusts for Minors, Charitable Lead Trusts, Charitable Remainder Trusts, Grantor Retained Trusts, Intentionally Defective Grantor Trusts, I.R.A. Management (Conduit) Trusts, Supplemental Needs Trusts, Qualified Personal Residence Trusts, etc.

TRUST AMENDMENT / CODICIL

Schneiter Law, PLLC provides Trust Amendment services to Revocable and Irrevocable Trusts.
Schneiter Law, PLLC provides Codicil (Will amendment) services to Simple, Long Form, and Pour-over Wills.
- Note that changing a Pour-over Will may have adverse consequences to prexisiting trusts.

POWER OF ATTORNEY (REGULAR OR DURABLE)

Under a Regular Power of Attorney, the attorney-in-fact can only exercise those powers which the grantor is able to exercise. In other words, upon the incapacitation of the grantor, the power of attorney automatically expires by operation of law.
Under a Durable Power of Attorney, the attorney-in-fact can exercise all powers designated by the grantor even after the grantor's incapacitation. The Durable Power of Attorney is regularly used and executed with the Living Will.

ADVANCE HEALTH CARE DIRECTIVE (LIVING WILL)

Used to give guidance to health care providers and caregivers as to the course of treatment the patient wishes when the patient is incapacitated and cannot give informed consent.
It may be used to prevent the prolonging of life where the patient is incapacitated by not allowing doctors to use life support, feeding tubes, etc., when the patient is terminally ill or in a coma.
Usually executed in conjunction with the Durable Power of Attorney.

SUPPLEMENTAL DOCUMENTS

Trust Transfer Documents: Bills of Sale, Assignments, Negotiable Promissory Notes, Non-negotiable Promissory Notes, and Self-Cancelling Promissory Notes.
Trust Operating Documents: Certificate of Trust.
Miscellaneous Documents: Funeral/Memorial Information, Direction for the Disposition of Tangible Personal Property, Medical Records Release, Personal Representative Guidelines, and Trustee Guidelines.