An estate plan is a combination of legally binding documents that list the deceased person’s wishes. It can include listing beneficiaries for assets and property, instructions for management of the estate, selecting guardians for children, or an advance directive. The purpose of making an estate plan allows you to make plans for after you pass.
This article will explain who should have a plan, the purpose of making an estate plan, and its benefits.
Do I Need an Estate Plan?
An estate plan isn’t determined by age or income. Instead, an estate plan is for any person who wants to put legally binding arrangements in place for their property, assets, and loved ones.
Understanding the Purpose of Making an Estate Plan
The primary purpose of an estate plan is to ensure your needs and wishes are met at the end of your life and after you pass.
Your needs can include:
- Beneficiary designations for assets and property
- Arranging guardianships for any child/person in your care
- Developing a medical directive
- Designating an executor for your Will
- Protecting your assets
- Managing instructions for the estate
5 Parts of an Estate Plan
Estate plans include several components. Please note that no two documents are the same; lawyers will customize them to the person. Therefore, your plan may look different depending on your circumstances.
1. Last Will and Testament
- Lists who receives your assets and property
- Includes a guardian for your child/special needs person
- Names the Will’s Executor
2. Living Will
- Details the type of end-of-life care you want, including:
- Type of pain management
- Organ donation
- Type of life-sustaining measures
3. Financial Power of Attorney
- Makes financial decisions on your behalf (if you’re unable to make it yourself)
- Pays your bills
- Manages your investments
- Makes legal decisions on your behalf
4. Medical Power of Attorney
- Makes your medical decisions
5. Trust
- Controls how and when to distribute your assets
- Reduces or eliminates total due on estate taxes
- Several types of Trusts are available:
- Charitable Trusts
- Credit Shelter Trusts
- Dynasty Trusts
- Family Protection Trusts
- Irrevocable Trusts
- Irrevocable Burial Trusts
- Life Insurance Trusts
- Living Trusts
- Revocable Trusts
- Special Needs Trusts
- Spendthrift Trusts
- Testamentary Trusts
Benefits of an Estate Plan
Finding an Estate Planning attorney and developing a plan that best suits your life takes time, but it’s worth the investment. Here are several benefits you and your loved ones will receive from your planning.
- Minimize wait time for disbursement
- Carry out your wishes
- Select whom you feel comfortable making your financial and medical decisions
- Reduce taxes
- Lower overall expenses for your loved ones
Learn How to Begin on Your Estate Planning Process
At Auld Brothers Law Group, we’re here to help guide you through the legal process of developing an estate plan. You can begin by reviewing our Estate Planning Checklist. Then contact us to schedule a free, 30-minute consultation with legal advice.
When you choose Auld Brothers, we aim to provide clear, straightforward information to prepare you for the future.