What Documents Are Included in a Complete Estate Plan? | Kansas Estate Planning

When people hear the term “estate plan,” they often think only about a Last Will and Testament. While a will can be an important part of an estate plan, a complete estate plan involves much more than a will.

A well-designed estate plan should address what happens to your property after you die, but it should also address what happens if you become incapacitated and cannot make financial or medical decisions for yourself. Depending on your circumstances, your plan may also include a revocable trust, beneficiary designations, a Transfer on Death deed, and other documents designed to carry out your wishes.

For Kansas families, working with an experienced Kansas estate planning lawyer can help ensure that your documents work together and that your assets are properly coordinated with your overall plan.

What Is an Estate Plan?

An estate plan is a collection of legal documents and arrangements designed to address your financial and personal wishes during your lifetime, during periods of incapacity, and after your death.

There is no single set of documents that is right for everyone. A young couple with minor children may need a different estate plan than a retired couple with significant assets, a blended family, or a business owner.

A complete estate plan commonly includes several of the following documents.

1. Last Will and Testament

A Last Will and Testament explains how you want certain property distributed after your death.

Your will can:

• Identify the people or organizations you want to receive your property.
• Name an executor to administer your estate.
• Nominate a guardian for minor children.
• Establish trusts for beneficiaries, including children or other individuals who should not receive an inheritance outright.
• Provide instructions for the payment of certain debts and expenses.
• Address property that remains in your probate estate.

However, a will does not control every asset you own.

Assets that have a beneficiary designation, joint ownership, a Transfer on Death designation, or that are properly owned by a trust may pass outside of your will.

That is why simply having a will is not necessarily the same thing as having a complete estate plan.

2. Revocable Living Trust

For some Kansas families, a revocable living trust can be an important part of an estate plan. A revocable trust allows you to place assets into a trust during your lifetime while generally retaining control over those assets. You can typically serve as your own trustee while you are alive and capable. A properly funded trust can provide several benefits, including:

• Avoiding probate for assets owned by the trust.
• Providing a mechanism for managing trust assets if you become incapacitated.
• Allowing assets to pass to beneficiaries according to your instructions.
• Providing continuing management of assets for beneficiaries who may not be ready to receive an inheritance outright.
• Providing additional privacy because trust administration generally does not involve the same public probate process as assets passing under a will.

A trust is not appropriate or necessary for everyone. Whether a revocable trust makes sense depends on your assets, family circumstances, goals, and the type of estate plan you want. Importantly, creating a trust is only part of the process. Assets generally need to be properly titled or otherwise coordinated with the trust for the trust to accomplish its intended purpose. A good estate planning attorney will help get these items into your trust.

3. Durable Financial Power of Attorney

Estate planning is not just about what happens after you die. A Durable Power of Attorney for financial matters allows you to designate someone to make financial and property decisions for you if you are unable to do so yourself. Your agent may be given authority to handle matters such as:

• Banking and financial accounts.
• Real estate transactions.
• Paying bills.
• Managing investments.
• Filing taxes.
• Handling business interests.
• Dealing with insurance and other financial matters.

Without a properly executed power of attorney, your family may have to seek a court-appointed conservator or pursue another legal process if you become incapacitated and cannot manage your financial affairs. A financial power of attorney can therefore be one of the most important documents in an estate plan.

4. Durable Power of Attorney for Health Care Decisions

A Durable Power of Attorney for Health Care Decisions allows you to appoint someone to make healthcare decisions for you if you are unable to make or communicate those decisions yourself. Your healthcare agent may be called upon to communicate with doctors and other healthcare providers and make decisions consistent with your wishes. Choosing your healthcare agent is an important decision. The person you appoint should be someone you trust to make difficult decisions and advocate for your wishes.

5. Living Will

A Living Will, sometimes called an advance directive concerning end-of-life care, communicates your wishes regarding certain medical treatment if you are facing an end-of-life situation or other circumstances addressed by the document. A living will is different from a healthcare power of attorney. Your healthcare power of attorney appoints a person to make healthcare decisions. Your living will provides instructions about your wishes. These documents can work together to give your family and healthcare providers greater clarity about your preferences.

6. HIPAA Authorization or Release

Privacy laws can make it difficult for family members or other individuals to obtain your medical information without proper authorization. A HIPAA authorization or release can authorize designated individuals to receive certain protected health information. This can be particularly important if your loved ones need information from your healthcare providers while helping make medical decisions on your behalf. A HIPAA release does not necessarily give someone authority to make healthcare decisions. Instead, it helps address access to your medical information.

7. Transfer on Death Deed

Kansas law provides another useful estate planning tool: the Transfer on Death Deed. A Transfer on Death deed can allow qualifying real estate to transfer to designated beneficiaries upon the owner’s death without requiring the property to pass through probate. For some Kansas property owners, a Transfer on Death deed can be an effective component of an estate plan. However, a Transfer on Death deed must be carefully coordinated with the rest of the estate plan. Using one without considering your other assets, beneficiaries, and estate planning documents can create unintended results.

8. Beneficiary Designations

Beneficiary designations are often overlooked when people create or update an estate plan. Many financial assets allow you to name beneficiaries directly, including certain:

• Life insurance policies.
• Retirement accounts.
• Investment accounts.
• Bank accounts.
• Other financial accounts that permit beneficiary designations.

These designations can control who receives the account after your death, regardless of what your will says. For example, you might have a will leaving your estate equally to your three children while an old retirement account still names only one child as the beneficiary. The result may not be what you intended. Reviewing beneficiary designations should therefore be part of the estate planning process. We ALWAYS encourage our clients to double check all beneficiary designations even if they are sure everything is correct. We handle a lot of probates that could have been avoided had someone taken our advice.

9. Pour-Over Will (for a Trust based Estate Plan)

If your estate plan includes a revocable living trust, your attorney may recommend a pour-over will. A pour-over will generally provides that certain assets remaining in your probate estate at death should be transferred to your trust. The pour-over will does not replace the need to properly fund and maintain your trust. Instead, it serves as an additional layer of protection for assets that may not have been transferred to the trust during your lifetime.

10. Guardianship Provisions for Minor Children

Parents of minor children have additional estate planning considerations. A will can allow parents to nominate a guardian for their minor children in the event both parents die. Parents should carefully consider:

• Who would raise their children?
• Who could provide a stable home?
• Who shares their values?
• Would the proposed guardian be willing and able to serve?
• Who should manage money inherited by the children?

An estate plan can also establish trusts to control how and when children receive inherited assets. Simply leaving a substantial inheritance outright to a young adult may not be the best solution for every family. Even the best child can make terrible financial decisions when they are young.

11. Personal Property Memorandum

Some estate plans also include a personal property memorandum addressing items such as jewelry, furniture, family heirlooms, collectibles, or other personal belongings. This can provide a practical way to communicate who should receive particular items. While the legal effect of a personal property memorandum depends on the circumstances and the governing documents, it can be a useful tool for reducing confusion and family disagreements. It also allows for flexibility as the Memorandum can be changed without going to your attorney as opposed to listing those items in your will or trust.

Your Estate Plan Is More Than a Stack of Documents

One of the biggest misconceptions about estate planning is that completing the documents is the end of the process.

It isn’t.

A successful estate plan requires coordination. For example, your estate plan should include:

Will + Financial Power of Attorney + Healthcare Power of Attorney + Living Will + HIPAA Release + Beneficiary Designations + Transfer on Death Deed (or other Deeds) + Revocable Trust (if applicable)

But if your assets are not properly coordinated with your documents, your plan may not work as intended. Estate planning should therefore involve reviewing not only your legal documents but also how your assets are titled and how beneficiary designations are structured. A good estate planning attorney will help you through this process.

What Happens If You Don’t Have a Complete Estate Plan?

If you die without appropriate estate planning documents, Kansas law determines how your probate assets are distributed. If you become incapacitated without an appropriate financial or healthcare power of attorney, your family may face additional legal and practical challenges. Without a plan, your loved ones may have to make difficult decisions without knowing what you would have wanted. Estate planning allows you to make those decisions in advance, while you are able to do so.

How Often Should You Review Your Estate Plan?

An estate plan should not necessarily be created once and forgotten. You should consider reviewing your estate plan when major life events occur, including:

• Marriage or divorce.
• Birth or adoption of a child.
• Death of a beneficiary or person named as your agent.
• Significant changes in your assets.
• Purchase or sale of real estate.
• Starting or selling a business.
• Changes in relationships with beneficiaries.
• Moving to another state.
• Changes in tax or estate planning laws.

Even without a major life event, periodically reviewing your estate plan can help ensure that your documents and beneficiary designations continue to reflect your wishes.

Creating a Complete Estate Plan in Kansas

There is no universal estate plan that works for every person or family. The appropriate documents depend on your family, assets, goals, and concerns. For some people, a will and powers of attorney may provide an appropriate plan. Others may benefit from a revocable living trust, Transfer on Death deed, and more extensive beneficiary planning. The important thing is to look at the entire picture rather than simply checking the box that says you have a will.

At Minter & Pollak, we help individuals and families throughout Wichita and Kansas create practical estate plans designed around their specific circumstances and goals. Our approach is focused on providing effective, understandable estate planning without unnecessary complexity. Call our office today at 316-265-0797 or click here to schedule a free consultation to create a plan that protects your family’s future.

Photo by Joseph Barrientos on Unsplash.