Without an estate plan, your family and loved ones will pass through several difficulties. In fact, sometimes, making an estate plan may not be enough especially when it lacks those important estate planning documents. Of course, a will is one of those documents. However, there are more! A will is not effective in preventing probate neither is a will effective in designating an individual who will make financial or medical decisions for you when you become incapacitated.
What am I trying to point out there? I am simply trying to say that estate planning is more than drafting a will. There are other important estate planning documents you should consider when planning your estate; and one of these document is being ignored by two-thirds of all Americans.
Before we reveal the name of this document, let’s consider what estate planning is.
What is estate planning?
As the name implies, estate planning is a plan designed to manage and distribute the assets of a deceased after his death or incapacitation. An estate plan helps facilitate the distribution of the deceased assets upon his death. Without an estate plan, the deceased assets will be shared based on the intestate law of the state. The process isn’t always smooth and it can cause disharmony in a family.
The Significance of Estate Planning
Several individuals believe that having an estate plan is all about creating a will or a trust. But, there is more to include in your estate planning to ensure that all your assets are well managed and distributed effortlessly to your heirs after your demise.
A successful estate plan also comes with provisions allowing your loved ones to access or manage your assets should you become incapacitated.
The Important Estate Planning Documents
Below is a list of items every estate plan should include:
- Will
- Trust
- Durable power of attorney
- Healthcare power of attorney
- Guardianship designations
- Letter of intent
- Guardianship designations
- Beneficiary designations
In addition to the six documents and designations mentioned above, a good estate plan should also consider buying an insurance product such as long-term care insurance to cover old age, a lifetime annuity to generate some level of income till death, including life insurance to transfer money to beneficiaries without probate.
How good is your estate plan? Does it include these documents? Let us take a look at each of the documents.
What estate planning document are two-thirds of all Americans Missing?
For most Americans, estate planning can be complicated and a little scary. It might seem overwhelming and costly, and it isn’t easy to confront one’s mortality and make the right decisions for it. Nevertheless, it is crucial that all American have one essential estate planning document: A Health Care Directives.
What is a Health Care Directive?
A health care directive is a legal document which lays out the decisions for caregivers in the event of illness or dementia as well as giving directions for end of life decisions, and how the body should be taken care of after death. They are sometimes regarded as living wills, durable health care power of attorney, or medical directives.
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
