What You Need to Know About Estate Plans

What You Need to Know About Estate Plans

Here are some things to consider before you set up an estate plan.

You might think of estate planning as only something that wealthy people need to worry about. That couldn’t be farther from the truth. Everyone should have an estate plan. Why? Below we’ve answered some of the most common questions about estate planning.

What is an Estate Plan?

An estate plan is a set of documents that dictate what happens to your assets should you become incapacitated or die. It helps protect your loved ones from having to make difficult decisions. 

What is Part of an Estate Plan?

An estate plan generally includes other documents — among them a durable power of attorney for finances, a medical directive, a will, and trust information (if you have trusts), as well as details on handling legal fees, and more. 

  • Will. A will allocates assets to loved ones in the event of your death and provides a vehicle where you can name guardians for minor children.
  • Power of Attorney. A power of attorney (POA) is a legal document that designates who is responsible to act on your behalf if you become incapacitated.
  • Medical Directive, also known as an advance directive, is a written legal document that outlines your healthcare wishes if you are unable to communicate or make medical decisions.
  • Trust is a legal arrangement that ensures your assets go to the beneficiaries of your choice.

Do I Need an Estate Plan?

Yes, you should have an estate plan. An estate plan will help your beneficiaries and go a long way toward avoiding a potentially messy family situation. 

How to Set Up an Estate Plan

You can create an estate plan with the help of an estate attorney. An estate plan contains many legal documents that require the help of a professional.

Less Expensive Option. Many online estate plan options include legal documents drafted by attorneys and online consultations with an estate lawyer.

Do One Thing: Contact a lawyer about creating an estate plan right away. It might seem unpleasant to think about what might happen when you’re gone, but this plan will help your loved ones immensely. 

Chris O'Shea

Powered by: SavvyMoney