What You Shouldn’t Forget When Putting Together Your Estate Plan
Your estate plan is important because it allows you to be in control of your assets when you are gone. It also protects your family and beneficiaries because you can avoid probate. When putting together your plan you shouldn’t forget power of attorney, funeral arrangements, and a last will and testament.
Power of Attorney
A power of attorney names a person who will act on your behalf if you should become incapacitated. This ensures you know what would happen in legal, healthcare, and other proceedings. There are different types of powers of attorney. There is a general power of attorney which covers any legal or medical matter. Special or limited power of attorney gives a person power only for a specific purpose or period. There is also a medical power of attorney which allows someone to make decisions related to your healthcare.
Funeral Arrangements
Including funeral arrangements in your estate plan can help alleviate burden to your family when you are gone. If you make the decisions, there won’t be any conflict and they will be able to grieve rather than extensive planning. You can name someone who will ensure your plans are carried out. You can also make distinctions of what you want to happen with a funeral or memorial service. A funeral is done with a casket while a memorial service usually isn’t.
Last Will and Testament
Your last will and testament allows you to specify where your assets will go when you pass away. Your assets include all of what you own, including real estate and personal property, and includes intangible assets, such as your bank account or investments. Your Will allows you to name beneficiaries, to whom is the person or people you will leave your assets. Your Will is an important document for other reasons. In this document you can also name a guardian if you have children under the age of eighteen or pets. You can also name an executor who executes the wishes laid out in your will.
Once you have included everything in your estate plan you should make sure to update it periodically. It is likely that things will change for you as you grow older which means that your wishes may change. Keeping your estate plan up to date helps you have the peace of mind that everything is taken care of when you are gone.
Check out this article on how to build a strong financial foundation for your family!