Understanding Estate Planning
Estate planning is an important process that helps you plan for the future of your assets, debts, and other matters related to your property. Estate planning involves making decisions in advance so your loved ones know what to do. If done correctly, estate planning can benefit you and your family. Here's what you need to know.
Common Estate Planning Documents
It is wise to consult a qualified estate planning lawyer before drafting any documents for managing your property after death or incapacity. An experienced lawyer can help guide you through the process and ensure that all relevant laws are followed when creating these documents so that they are legally binding upon death or incapacity. Common estate planning documents include the following:
- Wills. The most common estate planning document is a will. This document allows you to designate who will receive your assets upon death and how those assets should be managed and distributed.
- Trusts. Trusts are often used to protect assets for future generations and can provide advantages such as avoiding probate court. There are several different types of trusts, each serving a different purpose.
- Powers of Attorney. Powers of attorney designate someone to manage your affairs if you become incapacitated or unable to make decisions for yourself.
- Advance Medical Directives. An advance medical directive is a document that outlines your wishes regarding medical treatments, which is especially important if you become incapacitated and unable to make decisions for yourself at a critical time. For example, a Do Not Resuscitate (DNR) order, is a specific type of advance medical directive instructing healthcare providers not to provide resuscitation if your heart or breathing stops.
- Beneficiary Designations. Many accounts, such as retirement accounts and life insurance policies, will have designated beneficiaries in the event of your death. It is important to review these beneficiary designations regularly and make any necessary updates.
- Guardianships. Guardianships are legal documents that designate an individual or individuals to assume responsibility for a minor child in the event of death or incapacity of the parent.
Estate planning is a complex process that considers many state and federal laws. Each document has its own purpose and should be tailored to fit the needs of the individual creating them. An estate planning lawyer can help answer any questions you may have about estate planning so that you feel comfortable making informed decisions about how best to manage your assets in the future.
Estate planning is an important process for ensuring that your wishes regarding managing your property after death or incapacity are met properly without any legal complications for you or those close to you. With proper estate planning in place, both you and your family will have peace of mind knowing everything has been taken care of in advance.
Contact a local estate planning lawyer to learn more.