Estate planning is the process of organizing the distribution of a person’s assets while they’re alive in anticipation of their passing. Most people create an estate plan at least once and preferably update it throughout their life. The essential purpose of an estate plan is to name beneficiaries to inherit a person’s estate and detail how the person wants the funeral to be arranged.
Are you contemplating an estate plan? Then you shouldn’t delay. However, an estate plan is much more than the itemization of an estate and the declaration of heirs. Here’s what you should know:
The executor of your estate
Without an executor of an estate, your assets would be sitting around collecting dust. An executor helps gather everything your family needs after your death and ensures your heirs are given their inheritance.
Power of attorney
A will focuses a lot on what happens when someone dies, however, one important aspect may determine what happens if someone is injured or develops a medical condition and becomes unresponsive. A power of attorney is an agent that makes financial and medical decisions on behalf of the testator if they’re incapacitated.
Trusts
While a will includes everything from asset distribution, last wishes, power of attorney and the executor of your estate, there are a few flaws in this legal document. Firstly, heirs will have to wait for their inheritance during probate, and your estate may be taxed. To avoid this, many people plan out a trust which can not only speed up the distribution process and avoid taxes but also ensure an heir receives their assets and gives you more control over how and when they’re given it.
If you’re planning your estate, then you may need to consider reaching out for legal help to ensure your documents are valid.