Step 5. Consider Alternatives

There might be several ways to accomplish your objectives. Explanations of some of the alternatives are given below.

Some issues that you might want to discuss with your advisor include the following:

You need to check the laws of the state in which you live. Each state makes it own laws in regard to estate planning.

A. Property ownership

How your property is titled is important because it affects how a person's property is distributed at death.

This resource will help you make decisions about distributing your personal property. http://www.yellowpieplate.umn.edu

For information on the main forms of property ownership and examples of estate settlement for each, see Estate Planning: Property Ownership, http://www.montana.edu/wwwpb/pubs/mt8907.html

For more information about how to communicate when there are sensitive issues relating to property transfer visit, http://www2.ces.purdue.edu/farmtransfer/

B. Preparing a will

A will is a legal declaration of how a person wants to have his or her property distributed at death.

Another resource to help you understand wills is Estate Planning: Wills, http://www.montana.edu/wwwpb/pubs/mt8906.html

C. Using a trust

A trust is a legal arrangement where a person (grantor) transfers legal ownership of property to a trustee to hold and manage for the benefit of named beneficiaries.

We suggest that you discuss trusts with your attorney.

D. Your gross estate

Another net worth calculator is available at Smart Money. The site is www.smartmoney.com/estate/ . Read the article Will You Owe Estate Taxes? And use the Net Worth Calculator and The Estate Tax Exposure Meter under the link, Will You Owe Estate Taxes.

Estate Planning Defined shows an example of How to Estimate a Gross Estate, Probate Estate, and Taxable Estate. (You will need to scroll down the page to this section.) hthttp://www.agnr.umd.edu/MCE/Publications/Publication.cfm?ID=131&cat=A

E. Insurance

This resource from the National Financial Planning Support Center talks about insurance serving several purposes in estate planning. http://www.fpanet.org/public/tools/estate_planning.cfm

For information to help you understand when insurance fits into your estate plan, see Life Insurance: An Estate Planning Tool, http://www.montana.edu/wwwpb/pubs/mt9211.html

F. A living will

This is a declaration that you prefer to die a natural death instead of using extraordinary medical treatment to keep you alive.

This site has forms for living wills that are designed for particular states. http://www.finance.cch.com/tools/poaforms_m.asp

G. Durable power of attorney

This site has forms for a durable power of attorney that are designed for particular states. http://www.finance.cch.com/tools/poaforms_m.asp

More information, http://msuextension.org/publications/FamilyFinancialManagement/MT199001HR.pdf

H. Health care power of attorney

This site has forms for health care power of attorney that are designed for particular states. http://www.finance.cch.com/tools/poaforms_m.asp

Before you meet with an advisor, you might want to develop a list of questions to ask about the alternatives that seem to fit your estate planning needs.

Make a list of your alternatives. (Directions: This will take you to a page that you can use to print and record your information or that you can save as a Word file to record your information.)