Introduction
You may believe that estate planning is only for the wealthy, but that is incorrect. Having a plan in place is important and beneficial for everyone, regardless of wealth.
Estate planning involves making key decisions during your lifetime to protect your hard-earned assets and provide for your loved ones in the future. A proper estate plan will also designate who will assist you if you can’t manage your finances or healthcare on your own.
With proper estate planning, you will establish a variety of protections for yourself and your loved ones:
- You protect yourself from a court-appointed guardianship.
- You assign someone to care for your minor children if you suddenly pass away.
- You ensure your assets are distributed according to your wishes.
- You prevent your loved ones from having to endure a probate matter with the court, saving them money, time, and stress during an already challenging time.
To accomplish your goals, an estate planning attorney will draft several legal documents, each with different purposes:
- Powers of Attorney: Designate someone you trust to assist you with medical or financial affairs during your lifetime.
- HIPAA Authorization: Allows a designated person to access your medical information to facilitate coordinated healthcare decisions.
- Health Care Directive: A document that describes your medical wishes for end-of-life-care, also known as a Living Will.
- Last Will and Testament: A document that outlines how you want your assets distributed and assigns someone to manage your estate after you pass. A will alone will not prevent probate.
- Trusts: A fiduciary agreement that allows another party to hold your assets to distribute to a beneficiary. Having a trust in place eliminates the need for probate.
Conclusion
While there are other estate planning documents an attorney can create, the documents listed above make up the foundation of estate planning. These essential documents can provide benefits to everyone, ensuring clarity and protection for you and providing a roadmap for your loved ones, both now and in the future.
