M&A has coined the name ‘Tri-Powers’ to represent the three most basic documents that are the first step in Estate Planning. The Tri-Powers consist of a General Durable Power of Attorney, Healthcare Power of Attorney and a Living Will. These documents are vital in protecting you and your family against incapacities that are certain to occur in life.
These are powerful words in the legal and title industries – almost magical. It means that if these words are present in the title of a document – the moment a co-owner dies, his/her ownership interest in that title vanishes with them. The surviving owner or owners get all of the decedent’s interests automatically and without probate. It’s a very efficient way to avoid probate – but a very dangerous legal potion, if these magical words are not used with knowledge and skill. Why? Because it is also a very efficient way of unknowingly disinheriting a loved-one or of giving Uncle Sam a gift called a gift tax or of giving a creditor a fast track to your assets even if it’s not your debt. Call us and ask about a Living Trust.