Estate Planning Documents

What is Estate Planning?

It’s essential to plan for future events, such as disability or death, by creating an estate plan. It’s also important to decide what to do for your dependents if you become incapacitated or disabled. An estate plan is designed to ensure that your wishes are met and your assets protected. 

You should consider many variables when developing an estate plan:

• The amount of life insurance you should have
• Who will care for your kids if both parents are deceased?
• The procedure for distributing your assets after your death
• Who will be your healthcare agent and financial guardian?
• Who will be your healthcare agent and financial guardian?
• How much and what types of property do you want your family to inherit?
• Who will assume responsibility for your children if you become disabled or incapacitated?

Types of Estate Planning Documents

An estate planning document is any written legal document that outlines your wishes for the distribution of your assets and/or the care of your dependents after your death. 

• Last Will and Testament

Estate planning is the process of composing a will. A will is one of the most crucial estate planning documents. To guarantee that your desires are adhered to after your death, you must have a valid will. Every time there’s a significant life change, such as getting married, having children, or purchasing a house, you should create a will. 

The will establishes the distribution of your assets after your death. You may donate your assets to any charity you desire. You also have the option to leave nothing to your spouse. 

A will is only valid if you pass away. If you do not have a will, your assets will be distributed according to the state’s intestacy laws.

• Durable Power of Attorney

A power of attorney is a written legal document that outlines your wishes for the care of your dependents if you become disabled or incapacitated. A durable power of attorney is a power of attorney that remains in effect if you become disabled or incapacitated. 

If you become disabled or incapacitated, your durable power of attorney will be able to make financial and legal decisions on your behalf. It is important to name a durable power of attorney in your estate planning document. 

If you name a person as your power of attorney in a will, it is not a durable power of attorney. A regular power of attorney only remains in effect until you die.

• Living Will

A living will details your wishes for medical treatment if you become terminally ill or severely wounded. A living will detail your wishes if you become terminally ill or severely wounded. 

You may choose whether or not to receive medical treatment. And if you are terminally ill or severely wounded, you may choose the nature of the treatment. If you don’t have a living will, your doctor will make treatment decisions. If you are on life support, you will be alive by medical means. 

And if you have a living will, you may express your desire to live as long as possible but don’t want extraordinary efforts to keep you alive if they are not beneficial.

• Health Care Proxy

A Health Care Proxy lists your preferences for medical treatment should you become unable to make your own decisions. If you have a Health Care Proxy, you can designate a person to make medical choices for you. If you don’t have a Health Care Proxy and become incapacitated, a family member will have to make medical decisions for you. Medical choices are frequently troublesome, so it can be difficult for family members to make them.

• Trusts

An estate planning trust is a written legal document that outlines your wishes for the care of your assets and dependents after your death. A trust can be used to store assets and provide for loved ones after your death. If you die with a trust, it will be used to distribute your assets according to your wishes. If you die without a trust, your assets will be distributed according to the state’s intestacy laws.