Key Terms You Need to Know About Wisconsin Estate Planning

Wisconsin estate planning is an essential process for anyone looking to secure their assets and ensure their wishes are carried out after their passing. Understanding key terms related to Wisconsin estate planning can help you navigate this complex area effectively. Below are some of the most important terms you need to know.

1. Will
A will is a legal document that outlines how a person’s assets will be distributed upon their death. In Wisconsin, having a valid will can help avoid disputes among heirs and ensure that your wishes are followed. A will can also appoint guardians for minor children.

2. Trust
A trust is an arrangement where one party holds property on behalf of another. In Wisconsin, trusts can help manage your assets while you are alive and after your death. They can also provide tax advantages and avoid the probate process.

3. Probate
Probate is the legal process through which a deceased person’s estate is settled. In Wisconsin, the probate process can be lengthy and costly. Proper estate planning can help minimize the time and expenses associated with probate.

4. Power of Attorney
A power of attorney is a legal document that allows you to appoint someone to make decisions on your behalf if you become incapacitated. In Wisconsin, there are different types of power of attorney, including those for health care and financial matters.

5. Advance Directive
An advance directive is a legal document that specifies your wishes regarding medical treatment and end-of-life care. In Wisconsin, having an advance directive ensures that your health care preferences are respected if you cannot communicate them yourself.

6. Estate Tax
An estate tax is a tax on the transfer of property after someone’s death. Wisconsin does not impose a state estate tax; however, federal estate tax considerations may apply depending on the size of your estate.

7. Intestate
Dying intestate means passing away without a valid will. In Wisconsin, when a person dies intestate, state laws will determine how their assets are distributed, which may not align with what the deceased would have wanted. Estate planning helps avoid this situation.

8. Guardian
A guardian is a person appointed to make decisions for another individual, typically a minor child or an incapacitated adult. It is crucial to appoint a guardian in your will to ensure your children are cared for by someone you trust.

9. Living Trust
A living trust is a trust created during a person's lifetime. It allows assets to be transferred to beneficiaries without going through probate. This can make the transition smoother and faster for your heirs.

10. Special Needs Trust
A special needs trust is designed to benefit individuals with disabilities without disqualifying them from government assistance programs. This type of trust can provide for additional care and support while preserving eligibility for services.

By familiarizing yourself with these key terms related to Wisconsin estate planning, you can better prepare for the future and ensure that your estate is managed according to your wishes. Consulting with a qualified estate planning attorney can also provide valuable guidance tailored to your specific situation.