Planning your estate means taking the time to ensure all your affairs are in order. Most people think of their will when they’re taking care of this, but the will isn’t the only component of a comprehensive estate plan.
Your estate plan doesn’t cover only what happens after you pass away. It can also dictate how certain things are handled if you become incapacitated. Whether you’re embarking on creating your first estate plan or taking the time to review one that’s already made, be sure to consider these components.
Components for incapacitation
You should name someone who can make medical decisions and financial decisions for you if you become incapacitated. The individual or individuals you choose need to be given power of attorney designations over the chosen areas. You should discuss with them so they know how to handle your affairs. Creating an advanced directives document can help your medical power of attorney and healthcare team care for you if you can’t speak up for yourself.
Distribution of assets
Your will can distribute assets to your chosen beneficiaries, but it will likely require them to go through probate court proceedings. It’s possible to avoid probate court by establishing a trust to pass the inheritance you choose to each beneficiary.
Making sure that your estate plan is legally enforceable is critical. With this in mind, working with someone who can assist you with each component is vital. This can give you peace of mind because you know that you did what you could to make things easier for your loved ones.