Contrary to what most people believe, estate planning involves more than drafting a will. A well drafted estate plan consists of other important legal documents such as a power of attorney, health care power of attorney, letter of intent, beneficiary designation, etc.
Below, we have highlighted some of the most important documents in an estate plan.
Most Important Documents in an Estate Plan
1. Last Will
No doubt, a will is one of the most important estate planning documents. It determine who gets your assets after your death. This document also consist of the names of your estate beneficiaries, including the assets you want to transfer to each of the beneficiaries.
The importance of a will is numerous. Aside from those mentioned above, a will can also help you designate guardians for your minor children (If you have any). In addition, with a will, you can select your personal representative also known as an estate executor or executrix.
The job of your estate executor is to handle everything regarding your estate, including the distribution of your possessions, paying your final bills, filling your final tax return, and shutting your accounts. If you fail to create a will, the government of your state will step in.
2. Living Trust
A trust is another important estate planning document. This legal document allows you to take assets you own and place them into the ownership of a trust you set up while alive. The trust is the owner of your assets and managed them while you are alive. Upon your death, the trustee (the individual you select to manage the trust) shares the assets placed in the trust to the designated beneficiaries.
A living trust is private and isn’t subjected to probate. For this reason, a competent attorney will advise you to set up a living trust in order to bypass the difficult, time-consuming, and expensive probate process.
3. Health Care power of attorney
A health care power of attorney is an important estate planning document that allows you to choose an individual (agent or attorney-in-fact) who will make those important health care decisions on your behalf when you are unable to do so.
If you fail to set up a heath care power of attorney and you become incapacitated along the way, the court will choose an individual who will make those important health care decisions on your behalf. The individual is often someone close to you.
4. Durable Power of Attorney
A durable power of attorney is another crucial estate planning document. Like a health care power of attorney, this legal document allows you to select an individual who will make essential financial and legal decisions on your behalf when you are unable to.
Also, if you fail to set up a durable power of attorney and you become incapacitated along the way, the court will choose an individual who will make those important financial and legal decisions on your behalf. The individual is often someone close to you.
5. Letter of Intent
A letter of intent is used to convey instructions, request, including crucial personal or financial information that isn’t in your will. It is also used to specify how you want certain things to be done. For instance, you may decide to indicate how you want to be buried in your letter of intent. Worthy to note is that, you don’t need the help of an attorney to draft this document as it is not legally binding like a will.
Need an estate planning attorney?
Due to the complexities that surrounds the estate planning process, you may need the services of an estate planning attorney. With the help of an estate planning attorney, you should be able to not only plan your estate but update the plan later in the future.
An estate planning attorney can also offer you and your family valuable advice that could end up being a lifesaver. In addition, he can help in setting up various important legal estate planning documents like a power of attorney, healthcare directives, a living trust, etc.
If you want to plan your estate, and you need the services of an experienced estate planning attorney, please, don’t hesitate to contact us. Also, if you need help with updating your estate plan, you can contact our office as well. We boast of competent estate planning attorney who can help in creating an estate plan that suits your needs.