If you’ve never made an estate plan until now, then you likely don’t know what’s all included in one. For many people, an estate plan is an itemization of assets, who’ll inherit those assets and final wishes, typically relating to their funeral.
An estate plan has so much more than asset distribution, however, and many people don’t realize this. If you’re looking to create an estate plan, then you may need to know what’s going to be asked of you. The following are questions to consider:
1. Who will be an executor of your estate?
You’ll need someone to handle your assets when you die. An executor of your estate will handle the upkeep and protection of your assets while your family waits for their inheritance during probate. You want to find someone who’s responsible and trustworthy to look after your assets – and willing to do the work. That may take some time.
2. Who will be your power of attorney?
A will also include someone who can make decisions on your behalf if you’re incapacitated. This could happen after a serious accident or because you developed a medical condition. A power of attorney can be designated to make financial and medical decisions for your benefit.
3. Will you create a trust?
A will can do a great amount for you and your family, yet, your family will have to wait before they gain their inheritance and they could be taxed. To avoid this, many people create trusts which cover asset distribution and avoid probate and taxes.
Do you think it’s time to create an estate plan? Then you may need to consider learning about your legal options.