To some people estate planning is all about creating a will that holds your wishes regarding your assets. Estate planning is more than that. This plan involved the creation of other important legal document that makes the estate plan perfect.
In this article, we’ll be talking about the most important documents in an estate plan. However, before we proceed, let us look at what estate planning is.
What is Estate Planning?
Estate planning has a lot of definition. You see, if you understand the concept behind estate planning, you would be able to create a definition yourself. Estate planning in simple terms is a plan done to ensure that one’s assets is well managed and distributed after death. An estate plan can also ensure that you are well taken care of should you become incapacitated
Important documents in an estate plan
A living Will
Whether you decide to set up a medical power of attorney or not, it is best that you contact an attorney and create a living will. Despite what its name may imply, a living will is related to your medical care. This important legal document clearly states which medical treatments you would prefer and that which you wouldn’t prefer to keep you alive.
The list is exhaustive and addresses topics like resuscitation, dialysis, palliative care, including organ donation. As you make choice regarding your future medical care, it is best that you talk about your wishes with your doctor including your loved ones. You can decide to alter your medical directives at any given time. However, ensure that you discard all the copies of the previous directives.
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.
Power of attorney
A power of attorney is another must-have estate planning document. This document allows the estate owner to select an individual (agent or attorney-in-fact) whose job is to make crucial legal and financial decisions on his behalf in the event of incapacitation. The individual chosen can decided to invest the principal’s money and make other sensible financial moves.
Failure to appoint a power of attorney will give the court the right to do so.
Health care power of attorney
Just like a power of attorney, a health care power of attorney is a legal document that gives an individual the legal right to make important health care decisions on your behalf when you become incapacitated.
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.
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?
An estate plan is best created with the help of an estate planning attorney. Our estate planning attorneys aren’t only experienced, they are versed in the estate laws of New York. These professionals will ensure that your estate is planned according to the laws of New York and according to your wishes.
