2010 Issue 4
WHAT IS A GENERAL DURABLE POWER OF ATTORNEY?
... AND WHEN IS IT USED?
A
general durable power of attorney or GDPA is a document that allows the
person named (Attorney-in-Fact) to deal with accounts in the
principal’s name.
The principal is the person who creates the
GDPA. It also allows the Attorney-in-Fact (AIF) to act in the
principal’s capacity when the principal cannot. For example, the
AIF could sue a doctor for malpractice if the doctor injured the
principal and the principal is now incapacitated and can’t sue for him
or herself.
If
you create a Living Trust and a GDPA then the
Trustee will act over all assets in the trust but the AIF would act
over assets that cannot be in the trust (your IRA for example).
If you have put your assets into your trust and never become
incapacitated, it is possible that your GDPA would never have to be
used. It is one of those just in case documents that can save a
lot of expense (Court) and headaches (Court) and money (Court).
Without a GDPA, a representative of your estate would have to file a
Conservatorship to deal with the assets not in your trust.
WHAT IS AN ADVANCE HEALTH CARE DIRECTIVE?
... AND WHEN IS IT USED?
What the GDPA does for your assets, the Advance Health Care Directive
(AHCD) does for your person.
It authorizes someone (your agent) to
make health decisions for you when you cannot due to incapacity.
The
document contains instructions and wishes that you have directed that
the agent follow. An example of this is that you may wish all
artificial respiration, feeding and other items that would keep you
alive to be shut down if it were determined that you are in a
persistent vegetative state. A lot of complicated language that means
shut off all the tubes that keep me alive if I am a vegetable
(permanently that is).
As we age, we all run the risk of dementia and
alzheimer’s and this document names the person that you would want to
be in charge of your person. They would decide where you would live
and of course make health care decisions for you.
IF I AM CREATING A TRUST, WHY DO I STILL NEED A WILL?
A Living Trust package comes with a number of other documents, one of them being a Pourover Will.
What a pourover will does is catch any asset that you either forgot to
put into your trust or you acquired after you created your trust and
did not have time to put into the trust before you died and pours it
into the trust (hence the term-pourover Will). Hopefully, the
pourover will is never needed, because everything was properly put into
your trust, but it is good to know that your estate is covered just in
case.
An estate plan is just not complete
without a General Durable Power of Attorney, Advance Health Care
Directive and Pourover Will.
Have a question?
If you have a question that is not answered in our newsletter then just click here and send us an email.
Final Thought... It's never too late to learn!
FALL CLASS SCHEDULES ARE OUT
- WHAT ARE YOU PLANNING ON LEARNING?
Financial Planning Class - Lewis & Mathews Investment Management Inc.
"One of the best finance classes I have ever taken"
I have mentioned the financial planning class given by
the team at Lewis & Mathews Investment Management Inc. as one of
the best finance classes I have ever taken. It is a must for
everyone to have some idea of what is going on with their investments
and this class teaches you what you need to know whether you plan on
managing your own portfolio or working with a professional.
Part of the class is devoted to finding the right advisor for you and
not just financial, but also tax advisor and estate planner.
The teachers,; Steve Lewis, Jim
Curran and Deborah Peri are not just knowledgeable but a joy to listen
to. They are very patient and skilled at answering questions that
make the subject understandable to all. Definitely do not miss
Steve’s economic hedging class; not only is the information invaluable
but Steve will have you rolling in the aisles. I had no idea that
he was such a talented comedian.
The six week class starts on 10/13/10
and ends 11/17/10, every Wednesday evening from 7:00 – 9:00 pm at
Foothill College in Los Altos.
Living Trust Class - Rosmary Bartsch
If you would like to learn more about the documents discussed above as well as estate planning in general,I will be teaching a Living Trust
class at Las Positas College on October 22, 2010, from 6:30 – 8:30
pm. Here is what others are saying about this class...
"We
attended a Living Trust Workshop presented by Ms. Bartsch at Las
Positas College and she presented the information with such ease and
humor that she set the tone for the entire workshop. We
were very impressed with her knowledge, professionalism, and straight
forward, easy to understand presentation."
Now you can take this class; please sign up directly with Las Positas Community Education.
How to Swim When Your House is Underwater – What are your options?
Local experts will answer your
questions on credit, refinancing, loan modifications, short sales,
foreclosures and the legal aspects of your options.
Speakers include: real estate
attorney Brian Ripley, loan modification expert Adam Rosen, loan
refinance and credit expert Evelyn Rogerson, and short sale experts
Ronni & Maile Collmer.
Saturday, October 9, 2010 from 9:00am – 1:00pm
Walnut Creek
Cost: $39
To register call (925) 366-3823 or email Maile@TheCollmerTeam.com
Call Bartsch Law (925) 456 6001 |
