This blog post will discuss some of the most important things to remember when planning an estate. By following these tips, you can rest assured that your loved ones will be taken care of after you’re gone.
Will or Trust
One of the first things you need to decide when planning your estate is whether you will use a will or a trust. A will is a document that dictates how your property should be distributed after your death.
On the other hand, a trust is a legal agreement that appoints someone to manage your assets for you. Which option is right for you depends on several factors, including your age and marital status.
Using a will or trust is a smart way to go about planning your estate. There are many different avenues that you can choose from, so be sure to discuss the decision with your loved ones so you can determine which one will be right for you.
If you are married, you may consider using a trust instead of a will. A trust allows both spouses to make decisions about managing their assets even if one spouse dies. If you have children, it’s essential to name a guardian.
If both parents die before their children turn 18, the court will decide who takes custody of them. This is incredibly important, so be sure you have it in writing what you want to have happen when you pass on.
Power of Attorney
A power of attorney (POA) is a legal document that gives someone the ability to act on your behalf if you become unable to do so yourself.
For example, if you have a medical emergency and cannot make decisions about your care, a POA will allow another person to make them for you.
This can be highly advantageous to do, so be sure to keep it in your legal toolbelt in case you might need to employ it. Giving a trusted loved one or friend the power of attorney, you can ensure that your estate will be taken care of properly.
You may also want to consider having an advance directive in place as part of your estate planning documents. This is especially important if there’s any chance that you could lose the ability to communicate clearly before death due to illness or accident.
Some companies like Wilson Law Group, LLC, know that having these documents prepared by a professional now can help your family members avoid painful choices later on down the road. Especially when they may not know what their loved one would have wanted to be done with their life-sustaining treatments.
Beneficiary Designations
One of the simplest ways to avoid probate is to name beneficiaries on your financial accounts and insurance policies. This will ensure that the assets go directly to the people you want them to without going through the court system.
other related articles of interest:
Questions That Seniors Often Ask When They Start the Estate Planning Process
The Truth About Estate Planning (Wills, Trusts, and Probates)
It’s also essential to keep your beneficiary designations up-to-date. For example, if you get divorced, you will need to change the beneficiary designation on your retirement account so that it doesn’t go to your ex-spouse.
Ultimately, there’s more to estate planning than just writing a will. To ensure that your wishes are carried out after your death, it’s crucial to incorporate all of the above into your estate plan as well. By following these tips, you can rest assured that your family will be taken care of.
Image Credit: planning an estate by twenty20.com
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