It is crucial that all adults have an estate plan so that the loved ones who are left behind know exactly what to do. The estate plan doesn’t end with only a will. Of course, the will is the backbone of the estate plan.
The will is the document in which you lay out exactly what you want to happen with your possessions. Without this, you are said to have died intestate and the state’s laws governing who should get what comes into the picture.
Besides the will, you also to think about other issues that come up at the end of your life. Who is going to make medical decisions for you? Who is going to handle your finances? You can give these responsibilities to specific people by designating powers of attorney for health care and powers of attorney for your finances. Of course, these only come into the picture if you are unable to make decisions on your own.
If you have children, your estate plan takes on another purpose. It lays out who is going to care for your children if you pass away. You must set up a guardianship designation for each child if you need this to be part of your estate plan.
Other components, such as trusts, can also come into the picture. There are various types of trusts to consider, each of which serves a different purpose. Special needs trusts, revocable trusts and irrevocable trusts are three of the many types of trusts that you might need to consider.
Think about your overall goals and work to meet those goals through a comprehensive estate plan.
Source: FindLaw, “Estate Planning Tips: Find the Right Estate Plan for You,” accessed March 03, 2017