After death, your assets and all you have worked for will be left behind. None of your assets will be automatically transferred to any individual unless the right processes are followed. One of these processes involves the reading of a will.
It is only those whose names are written in the will, are eligible to inherit your assets. Thus, it’s very important that you create an estate plan before your demise as failure to do so might put your family in a difficult situation.
A well-developed plan is what you need
Contrary to what some people believe, estate planning doesn’t only involve the creation of wills. Of course, you’ll have to create a will that states how you want your assets to be shared, your beneficiaries, etc. However, to create a well-developed plan, you will need more than a will.
You will need other important estate planning documents such as a trust, power of attorney, health care power of attorney, letter of intent, beneficiary designation, and the likes. With these documents well set up by a competent estate planning attorney, you should be able to sleep well knowing that you have created a well-developed plan that can cater for your needs when incapacitated and the needs of your family and loved ones when you are no more.
Don’t let anyone deceive you, the only way to create a well-developed plan is by contacting an estate planning attorney.
Below, I provided an in-depth explanation into the various components of a well-developed estate plan.
What are the components of a well-developed plan?
A will
Undoubtedly, a will is one of the most important components of an estate plan. It is a legal document that contains the wishes of the deceased including the names of the estate beneficiaries and what portion each beneficiary will inherit. A will also contains the name of the estate executor. The estate executor is an individual tasked with handling the probate process and ensuring that the deceased’s wishes are upheld.
Without creating a will, the state will step in. The estate of the deceased will be distributed based on the intestate law of the state. With that said, it is Important that all estate owners create a will.
A trust
A trust is another important component of a well-develop estate plan. This common legal document is almost similar to a will. In fact, in some cases, a trust can take the place of a will. A trust is simply a fiduciary relationship in which one party, regarded as a trustor, gives another party, known as the trustee, the right to retain assets on behalf of the beneficiary. Unlike a will, a trust is completely free from probate. In addition, a trust can be created with the help of an experienced estate planning lawyer.
Durable power of attorney
A durable power of attorney is a legal document that allow you to select an individual who will make certain important decisions on your behalf should you be unable to make them yourself. These decisions ranges from medical or health care decisions, legal decisions, financial decisions, etc.
If you fail to create this document and you become incapacitated, the court will have to step in. The court will select and individual who will be in charge of making those important health care, legal, and financial decisions on your behalf; an arrangement you may not like.
Health care power of attorney
Just like a durable power of attorney, a health care power of attorneys is a legal document that allows an individual (agent) to make crucial health care decisions for you when you cannot make them yourself.
If you fail to create this legal document, the court will step in and select an individual who will be in charge of making those important health care decisions on your behalf.
Need an Estate Planning Attorney?
Contact us if you need to know more about what a well-developed plan look like or if you are ready to create one. We boast of some of the best estate planning attorneys and they have what it takes to offer you the best estate planning services.
