Three Parts of a Basic Estate Plan
Every person, no matter how significant they may feel their assets are, absolutely needs to have a well thought out estate plan that covers three very basic documents that will serve your best interests and make the lives of those you care about that much easier when the time comes. The three main planning instruments you should have include a durable power of attorney, a health care directive, and a last will and testament. These instruments will cover an array of subjects in our lives and our family’s lives after we pass away and should be taken very seriously, regardless of what you believe you may leave behind.
Power of Attorney
The first thing you need to include in your estate plan will be a power of attorney. This allows you to designate a person of your choosing to manage your property, assets, and finances during your life in the event you are incapacitated and unable to act in your own interest. A power of attorney carries a lot of weight and gives someone almost complete control of your financial life and should be vested in a trusted individual you can be sure will act solely in your best interest should a time come where you can’t handle these situations yourself.
Healthcare Directive
The second thing you should look into is a health care directive. A healthcare directive is essentially a type of a power of attorney that deals only with health care decisions. A healthcare directive allows you to appoint a trusted person to direct your medical care and make important end of life decisions should you be unable to.
Last Will and Testament
The third and most essential piece of estate planning is your last will and testament. A last will and testament is the most basic mechanism used to transfer property to family and friends upon our death. There are numerous other ways to pass along our assets and other parts of our estates, including various forms of trusts, a last will and testament is still necessary to direct our loved ones whom we leave behind about our final wishes including whether we wish to be buried, cremated or shot off into space, types of memorial services and other ways in which we want to be remembered.
It is important to understand that these are just the essentials of an estate plan and what you will ultimately need will vary depending on what your leave behind and who you wish to leave it to. Significant assets like large bank and investments accounts, your home or other real estate assets, your business, and other valuables like expensive jewelry or art may need even more extensive estate planning that satisfies everything from family dynamics and business partners to tax and legal considerations.
If you find that your basic estate planning is not where you want it to be, schedule a no pressure, complimentary consultation with one of our attorneys today so we can go over your wishes and create a basic estate plan that will leave you with peace of mind and your family with valuable information about your wants and desires when the unthinkable happens.