Most people, as they move through life, accumulate things such as vehicles, real estate, investments, and other tangible wealth. Setting up how these assets are disbursed after you die, in as an efficient manner as possible, is what estate planning is all about.
Considerations
Everybody needs some sort of estate plan, even if it is just a basic will to avoid a lengthy probate. You want to make the decisions now on how to manage your assets after you die. To avoid lengthy delays and legal hassles, it is important to set up proper legal documents to take care of those you leave behind.
A comprehensive plan should be in place if:
? You have minor children
? You have property that you care about
? You are concerned about future healthcare decisions
Before you begin, you must take stock of what you have. This includes all real property, investments, retirement accounts, insurance, and business resources. Once you know what you have, you can then make some decisions on what to do with each area to ensure that your wishes are ultimately carried out.
Estate Plan Elements
There are many different elements in a comprehensive estate plan because there are so many considerations to make. Not only do you have to worry about your physical assets, you have to consider guardianship of your children, and even your own personal welfare should you become incapacitated.
? Last Will and Testament ? The most basic plan you can make is to have a will. Wills tell those interested in how you want your wealth divided up among those you choose. They also explain who will take care of your minor children. If you don?t have a will, your case is decided by outside parties who do not have your family?s best interest in mind.
? Living will ? A living will spells out exactly how you want to be treated, or not treated, medically if you become terminally ill and are unable to express your wishes. A properly drawn up living will gives you the best chance to ensure that your requests will be followed.
? Power of attorney ? As you age, it is possible to become confused or suffer from memory loss. You can give someone power of attorney to ensure that someone is there to help you pay your bills, manage investments, or make other financial decisions. You will want to name someone you can trust to keep your best interests in mind should you become unable to make important decisions on your own.
? Medical power of attorney ? A medical power of attorney can be grated to someone you trust to make medical decisions for you even if you are not terminally ill.
? Trust ? If you have a sizable amount of property, money, or other assets that you want to disperse in a specific manner you should consider setting up a trust. Trusts can be configured in ways to minimize tax hits upon disbursement, or delay payment of your inheritance until some condition, like graduation from college is met.
Your life is complex and the things that you have accumulated should be passed on in accordance to your wishes, not according to the whim of a probate court. The rules and regulations regarding estate plans and taxes are complex. You should definitely seek out a good estate planning attorney in your area to help you create an adequate plan to meet your family?s needs.
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