Estate Planning Q. What is a Power of Attorney? A. A Power of Attorney is a written authorization for an agent to perform specified acts, either personal (i.e. health care) or estate (i.e. property) on behalf of a principal. Q. What are the types of Powers of Attorney? A. Durable: A Power of Attorney in which the powers granted remain in effect in the event of the grantor's incapacity or upon being found incompetent. Springing: A Power of Attorney in which the powers granted become effective when the grantor becomes incapacitated or is found incompetent. Health Care: A durable Power of Attorney that may be used to authorize health care decisions in the event of incapacity. Q. What is a living trust? A. A living trust is a trust that is funded with assets and that can be amended and revoked by the person creating the trust. The person creating the trust, referred to as the "settlor" or "grantor," typically retains all the benefits to the property placed into the trust. The grantor can also be the trustee in Ohio, although the grantor's spouse or a trust company also often serves as a trustee. A living trust can be funded with bank accounts, stocks, and bonds, a home and other assets. The terms of the living trust should provide for the disposition of the property in the trust both during the life and following the death of the grantor. Q. Is a living trust going to help me while I am living? A. A living trust is known as an intervivous trust that is operative during the lifetime of the settlor (or maker) and is commonly for the benefit or support of another person or persons. Because the trusts are written so that they are funded while the settlor or settlors are still living, income can flow to both parties. Thus, married persons often get parallel trusts, called A & B trusts, first for their own benefit while they are alive, then for the benefit of their children after their deaths. Q. What is a living will? A. A living will is a short document that basically states that if the situation should arise in which there is not a reasonable expectation of recovery from physical or mental disability, a person requests that he or she be allowed to die and not be kept alive by artificial means or heroic measures. Such a document should be drawn up by an attorney so that the current language of the statute will be used, its terms explained, and the legal and practical repercussions discussed before signing. Q. What is a fiduciary and what are his duties? A. A fiduciary must administer the decedent's estate and must account for the administration to the Court. A fiduciary that fails to perform his or her duties is subject to removal by the Court. The fiduciary may be bonded and is appointed according to the decedent's will or by statutory guidelines.