SIMPLE WILLS
Most people assume that their assets automatically get passed on to their spouse/partner, children or other family members. Not necessarily. A simple will is the one most people associate with the word “will.” It provides a basic list of instructions that tells the courts exactly how you want your estate settled. If you pass away without a will, your estate will be left to the courts, which could tie up your assets for a long time and diminish your estate with taxes that might have been avoided. And, most important, your estate may not be distributed according to your wishes.
LIVING WILLS
A living will has nothing to do with distributing your property after your death. Instead, it allows you to choose what medical treatments you want to have if you become incapacitated. In a living will, you may also name someone to make decisions on your behalf. In some states, an advance healthcare directive combines a living will and a healthcare power of attorney or proxy, so it is crucial for you to understand your state’s laws on this issue.
In general, a power of attorney (POA) is a legal document that allows you to appoint another person to take control of your affairs should you become unable to effectively do so. The person appointed becomes the agent, or Attorney-in-Fact, and the person who appoints is known as the principal. There are various types of powers of attorney and the one that you choose depends on the requirements of your current situation.
NON-DURABLE VS. DURABLE
The non-durable power of attorney is used only for a set period of time and usually for a particular transaction in which you grant your agent authority to act on your behalf. Once
the transaction is completed, or should the principal become incapacitated during this time, the non-durable power of attorney ceases.
The non-durable power of attorney is used only for a set period of time and usually for a particular transaction in which you grant your agent authority to act on your behalf. Once
the transaction is completed, or should the principal become incapacitated during this time, the non-durable power of attorney ceases.
FINANCIAL
Grants authority to manage the financial life of the principal when that person is unable to do so. The agent can legally manage the principal’s finances and property, make all financial decisions, and conduct all financial transactions that are within the scope of the agreement.
MEDICAL
Grants authority to take specific control over the health care decisions of the principal should they become incapacitated or unable to do so. This usually takes effect upon the consent of the presiding physician and it allows the agent to authorize all medical decisions related to the principal.
PARENTAL
Grants authority to another adult when a parent or guardian becomes ill or hospitalized, travels, or is otherwise unable to care for their child for a short period of time.
A trust is a fiduciary arrangement that allows another person, or trustee, to hold assets on behalf of beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries. Since trusts usually avoid probate, your beneficiaries may gain access to these assets more quickly than they might to assets that are transferred using a will. Assets in a trust may also be able to pass outside of probate, saving time, court fees, and potentially reducing estate taxes as well.
TYPES OF TRUSTS:
• IRREVOCABLE
A trust that cannot be terminated or revoked or otherwise modified or amended by the grantor. it may not be considered part of the taxable estate, so fewer taxes may be due upon your death.
• REVOCABLE
A trust created during a lifetime over which the grantor reserves the right to terminate, revoke, modify, or amend.
Estate planning is important if you want to settle your estate the way you see fit – and not leave it to someone else. By drafting a will, updating your beneficiaries and talking to your family about your final wishes, you’ll be taking the first steps towards getting your estate in order, while helping your family avoid possible problems later.
This may also be a good opportunity for you to review the beneficiary designation you have on file for your Trinity Industries, Inc. 401(k) Plan (the “Plan”). Log in to your account through the Plan website; from the Personal Information menu, click Beneficiary Information, then click Add/Edit Beneficiary.
Neither Voya® nor its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or an estate attorney before making a tax-related investment and/or insurance decisions.
The information contained on this website is intended to summarize at a high level some of the provisions under the Trinity Industries, Inc. 401(k) Plan (the “Plan”). It is not intended to provide a full description of the Plan. In the event of a conflict between the official Plan document and this website, the official Plan document is controlling.
Plan administrative services provided by Voya Institutional Plan Services, LLC (VIPS), a member of the Voya® family of companies.
© 2024 Voya Services Company. All rights reserved.