Taking the time to create a formalized estate plan is one of the most important things you can do when seeking to provide instructions for your loved ones if you ever become incapacitated or when you pass away. While most people think about a will when they hear estate planning, there are other documents that you should include in your plan as well.
Your will outlines how your personal property should be distributed after you pass away. It can also name someone to serve as your estate executor. Besides those basic tasks, your estate plan should also do a few other things.
What else might you need in your estate plan?
You’ll have to consider your circumstances and wishes when you’re trying to decide what else you need to have in your estate plan. These items may be beneficial:
- Trusts: These are legal tools that provide a place to hold your assets and outline the terms of distribution to your chose beneficiaries.
- Guardianship documents: This names a guardian for your minor children if you and their other parent become incapacitated or die.
- Advanced directives: This document provides specific instructions for your medical care team if you become incapacitated.
- Medical power of attorney: This names someone to become your agent who will make medical decisions on your behalf if you’re incapacitated.
- Financial power of attorney: This appoints someone to take care of your finances, including paying bills and managing assets, if you’re incapacitated.
Each of these items should reflect your wishes in a legally enforceable manner. It may be beneficial for you to work with a legal professional who can help you to set everything up in a way that gives your loved ones clear instructions and can be upheld by the court if there are ever any disputes.