Making an estate plan isn’t easy breezy, especially one that ticks all the boxes. Below, we have come up with a guide to help you navigate your way when planning your estate.
What is an Estate Plan?
An estate plan is a plan created to manage and distribute the assets of a deceased upon his or her passing. Contrary to what most people believe, an estate plan isn’t just about creating a will. If you want to create a good estate plan, you will need to consider other legal documents like a power of attorney, living trust, a financial power of attorney, letter of intent, etc.
You can create an estate by yourself (DIY), with the aid of online tools, or with the assistance of an estate planning lawyer. We will always advise that people hire estate planning lawyers for the preparation of an estate plan. Estate planning lawyers, unlike the online tools, can help you create a personalized estate plan. In addition, they can offer you the best advice when needed.
Why is Estate Planning Important?
Many people are yet to see the importance of estate planning. In fact, in the U.S lots of people die each year without drafting an estate plan, or even creating a will. The consequences of this terrible act will be experienced by the family and loved ones of these estate owners.
Creating an estate plan is very important. In fact, I cannot emphasize how important this plan is to not just you, but to your family and loved ones.
Failure to create an estate plan when alive will likely haunt you when you become incapacitated. It will also affect your family when you eventually kick the bucket. There will be lots of court hearings to decide how your properties will be shared. Your estate will surely undergo probate which can be difficult, expensive and time-consuming, In a nutshell, failure to create an estate plan is a very terrible mistake.
Estate planning guide: consider these things when planning your estate.
- Create a will and testament
One of the biggest mistakes you can make is not drafting a will and testament to mirror your most basic wishes. Even with the significance of a will and testament, a huge percentage of American still don’t have these important documents. Will and estate lawyers can help you draft a will or an estate plan. Contact them and don’t delay!
- Select a power of attorney
A second step we recommend is selecting a power of attorney. A power of attorney is an individual chosen by you to make important health care and financial decisions on your behalf should you become incapacitated. You might seek a lawyer who can take up this role, bringing legal expertise into the equation.
- Ask an attorney about living revocable trusts
The third step is to ask either your will or estate lawyers about setting up a revocable trust. Here is why: when you pass away, your estate may undergo a process known as probate. Probate is costly, stressful, and time-consuming process. One of the best ways to avoid this process, is by setting up a revocable trust.
- Create an advanced healthcare directives
After setting up a living revocable trust, the next step is preparing an advanced healthcare directive. An advanced healthcare directive, also known as a living will, consist of your end-of-life preferences. It covers all your requests, like whether you want to be resuscitated following a heart attack, or if you wish to be fed via a tube.
- Obtain life insurance
Most estate owners often ignore life insurance when planning their estate. Make sure you have a life insurance set up, and that your policy provides enough coverage for loved ones who are still dependent on you. Your lawyer can advise on how much coverage is required.
- Select a healthcare proxy
A health care proxy, similar to a power of attorney, allows you to designate an individual who can make decisions for you should you become incapacitated. However, this individual is limited to making just medial decisions.
- Keep your documents in the appropriate place
The final step of planning your estate involves choosing a safe and accessible place to store your estate planning documents. Ensure that the paperwork are organized and kept in a single place. In addition, your spouse or a close member of the family should be aware of the location so they are easy to find upon your passing.
Contact us
If you need an estate planning attorney for your estate plan. Or you need advice on how to cut down estate taxes, don’t hesitate to contact our office.
