When Wisconsin estate owners think about planning for the future, they may want to take advantage of the additional flexibility and control provided by trusts. Some may wonder if it's possible to create more than one trust to handle different parts of an estate. By creating a new trust, one won't revoke a previous trust unless the document explicitly seeks to address the original document. This is one aspect that differentiates trusts from wills.
Many people in Wisconsin are aware of the importance of estate planning. However, they tend to stop after creating a will. While a will is often a good start to a comprehensive estate plan, it is often not enough to address the personal, financial and family considerations that come up at the end of a person's life.
Powers of attorney are an important part of many estate plans in Wisconsin. They can be designed to fit the needs of the client, but there are situations in which the person who executed the document will want to terminate it. Generally speaking, there are three ways a power of attorney terminates. The first is that it will terminate on the date specified in the document. Durable powers of attorney are often designed to last indefinitely, though, and many powers of attorney do not include termination dates.
Wisconsin fans of comic book artist Stan Lee might be aware that there have been some issues surrounding his estate over the years. Earlier this year, he said that someone had stolen $1.4 million from his accounts. He also had a document notarized accusing his daughter of being emotionally abusive and trying to take advantage of him that he then took back. Furthermore, Lee had worked with a number of agents and managers over the years, and there may be multiple documents making different claims that will need to be sorted out.
Wisconsin residents may believe that thorough estate planning is nothing more than creating and executing their estate plan documents. While this may constitute the bulk of estate planning work, it isn't the end of the planning process. For instance, it may be necessary to review beneficiary designations on financial accounts from time to time to ensure that they still meet a person's needs. It is also important that they are designated properly.
Entrepreneurs in Wisconsin may draw an unexpected lesson from the passing of legendary musician Aretha Franklin. Reports on her death have noted that despite her $80 million estate and valuable music catalog, she died without a will or estate plan in place. Franklin is not alone in the pantheon of great musicians to pass away without a will. Prince died suddenly in 2016 at the age of 57, leaving behind a legendary catalog of music and a $300 million estate. Since he passed away without a will, his estate continues to be the subject of court proceedings and debates among his heirs.
People in Wisconsin who want to leave a portion of their estates to charity and the rest to loved ones should make sure to avoid making common mistakes. It is important to take into account the value of an account after tax.
When a Wisconsin resident creates a will, it generally allows them to name a guardian for a child. The same is generally true for parents in any other state in the country. However, if a parent passes away or becomes incapacitated suddenly, a child may need care right away. In some cases, a family member or other potential guardian can't get to the child for several hours.
Wisconsin residents and others who are 65 and older have a 70 percent chance of needing long-term care. However, people who live alone may lack the support system needed to help provide that care. In most cases, individuals have a spouse or a child to take care of them after a medical emergency or another health issue. A person who has no immediate family available can benefit from cultivating a circle of friends or acquaintances.
Wisconsin residents who are concerned about how their estate will be managed after their death should be aware that a trust can be a critical part of an estate plan. Trusts can be used to hold and manage various types of assets.