An estate plan can help your loved ones distribute your property and deal with creditors while avoiding a lengthy probate process. In addition, your estate plan can clarify end-of-life wishes and establish guardianship for your children.
When you create or update your estate plan, consider including the following items.
Legal directives
Your estate plan should include information regarding your desires if you become incapacitated. For example, you should name someone you trust with power of attorney who can manage your affairs if you experience serious medical issues. Many people choose to differentiate between financial and medical powers of attorney. You can specify limitations and even name a backup individual in your plan.
Guardianship
If you are a parent, it is important to create plans that ensure proper care and support for your family. For example, you should name a trustworthy guardian for your minor children to avoid legal conflicts and family court battles. You can also use your estate plan to outline your wishes for your children and their upbringing. Furthermore, you should consider life insurance options to help your children and their guardian cover medical and education expenses.
Distributing assets
Your estate plan should also detail plans for the distribution of your property. You can name beneficiaries to receive specific assets and an executor to administer the estate. Consider taking inventory of your personal property, including real estate and cars, as well as your financial assets, such as retirement funds, savings accounts and stock portfolios. You can even set up a trust to make transferring assets easier for your heirs and executor.
Your estate plan can help you communicate your needs and desires. Furthermore, an estate plan can protect your children and loved ones from expensive, time-consuming legal conflicts.
