Three Important Ways an Estate Plan Benefits You and Your Family
Did you know that after your death your last will and testament needs to be approved by a probate-court judge before your assets are distributed to your family? This is just one reason estate planning is important. Of course thinking about your own death isn't pleasant, but it is necessary if you want to save your loved ones from any unnecessary stress that will come with tying up loose ends after you pass. Everyone can benefit from having an estate plan, regardless of the amount of assets owned. So take some time to discover why estate plans are important and how your having one could benefit you and your family.
Helps Keep Your Loved Ones Out of Probate Court
An estate plan will include your last will and testament. However, in order to keep your family out of probate court, your probate lawyer will need to set up a living trust too. When you establish a living trust as part of your estate plan, your assets go into the trust after your death. Then, they are distributed according to your wishes by the person you've appointed as trustee. In addition to helping your family bypass probate court, living trusts are ideal for people who want to leave money to children who are too young to manage their own finances as well as people who need to continue financial support for loved ones who aren't able to support themselves, such as parents who live in a nursing home or a sibling who lives in a mental-health facility.
Establishes Someone as Your Power of Attorney
A lot of people don't realize that estate plans aren't only used to distribute your assets when you die. Estate plans also typically include instructions for your loved ones to follow in the event that you're unable to make medical or financial decisions on your own, including designating someone as your power of attorney to make health and financial decisions for you. Your estate plan can also include a "Do Not Resuscitate" form if desired so that your family doesn't need to decide whether to remove you from life support if necessary.
Designates Guardians for Minor Children
If you're a parent to minor children, your estate plan should include documentation that names guardians for your children after your death. While custody still often needs to be awarded by the court, the documentation in your estate plan makes the court aware of your wishes and the reasons you chose the named individuals to become your children's guardians.
It isn't difficult to create an estate plan, but there are a lot of things that you need to consider and a lot of different things that you should include. Because of this, you should consider hiring a probate attorney to help you create and manage your estate plan.