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What are the main Ancillary Documents that are prepared with your Trust Document?

When one prepares a trust, the trust designates which assets the settlor/grantor will give to which beneficiaries upon his/her death. The attorney who prepares the trust is likely to prepare some other ancillary documents for the settlor/grantor, together with the main trust document. Such primary ancillary documents can include the Pour-Over Will, Durable Power of Attorney, and the Health Care Power of Attorney.

What is the Pour-Over Will?

A Pour-Over Will is a special type of will that is often prepared together with a trust document to ensure that assets that were not funded into the trust will be transferred to the trust upon the death of the settlor/grantor. Often, people forget to fund any assets that they purchased after they've already prepared his/her trust, into the trust. The Pour-Over Will ensures that such assets transfer to be made a trust asset, upon the death of the settlor/grantor.

What is a Durable Power of Attorney?

A Durable Power of Attorney is a document in which the grantor/settlor of a trust can designate an agent who will make decisions for and manage the financial affairs of the settlor/grantor in the event that the settlor/grantor becomes incapacitated. The powers granted to such agent may include the power to buy/sell property, sign any contracts, or file tax returns on behalf of the incapacitated settlor/grantor.

What is a Health Care Power of Attorney (Advance Health Care Directive)?

A Health Care Power of Attorney, which is also called the Advance Health Care Directive, is a document in which the grantor/settlor of a trust can designate an agent who will make decisions related to medical care for the settlor/grantor, in the event that the settlor/grantor becomes incapacitated. The Health Care Power of Attorney can also be used to designate certain wishes of the settlor/grantor, such as whether to receive any life-sustaining procedures in the event that he/she goes into a vegetative state, etc.

Conclusion

As the ancillary documents mentioned above serve an important purpose, it will be good for an individual to ask his/her attorney to prepare such ancillary documents, together with the individual's main trust document.

Article Source/Courtesy of: Yuka Hongo, Esq. (Hongo Law Office, LLLC)
This information is not intended to be a substitute for specific individualized tax, legal or estate planning advice as individual situations will vary. HawaiiEstateAndTrust.com nor its registered representatives or employees, offer tax or legal advice. As with all matters of a tax or legal nature, you should consult with your tax or legal counsel for advice.

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