WHAT IS THE DIFFERENCE BETWEEN ESTATE PLANNING VS. ESTATE ADMINISTRATION?
- Done during your life
- For the purpose of planning for incapacity or death
- Carried out by you (and usually an attorney)
- The plan is made of documents (usually a Will, Advance Health-care Directive, Power of Attorney, Trust, etc.)
- Is put into action if you become incapacitated or die to carry out your wishes
- Done after your life
- For the purpose of getting your affairs in order and carrying out your wishes
- Carried out by an executor or personal representative (that you appoint in your Estate Plan)
- The process involves paying bills, taxes and carrying out the wishes stated in the Will and/or Trust
- Is put into action after you die by your executor or personal representative
MAKE AN INFORMED DECISION
There are many misconceptions about estate planning. For example, while many people may believe they must avoid probate by using a revocable living trust, in actuality a simple will may suffice. Now that Hawaii has adopted the Uniform Probate Code, probate administration can often be uncomplicated, expedient and more economical than creation of a trust. Circumstances vary, however, and the perfect estate plan in one person's situation can be a terrible plan for someone else. Estate planning is not a one-size-fits-all proposition.
This blog does not contain legal advice. You should not rely on this to determine what is in your own best interest. For legal advice, specific to your situation, you must meet with an attorney. All posts are based on hypothetical scenarios, not the actual circumstances of real clients.
is the founder of Hawaii Trust & Estate Counsel, a statewide Hawaii estate planning law firm with offices in Waimea, Hilo, Kona, and Honolulu. He has taught Estate Planning at the Richardson School of Law, and business law courses at the University of Hawaii—Hilo. He has resided in North Hawaii since 2008....MORE