An estate plan can help ensure your last wishes are met after you pass away. The majority of your estate plan will be about instructing how your assets should be handled. However, there are a few more things you can do with an estate plan.
If you are just starting on your estate plan, there are a few documents you will want to consider adding. Here is what you should know:
1. Your Last will and testament
The main document in your estate plan is your last will and testament. Your will manages how you wish for your assets to be managed, including who should inherit your assets. You can name friends, family, colleagues and charities as your beneficiaries.
2. The executor of the estate
Your executor is the person who is responsible for fulfilling your last wishes and distributing your estate is the executor. Your executor has a number of duties they need to fulfill, including collecting death certificates, contacting beneficiaries, paying taxes and debts and distributing assets. You need to have someone in mind to get started.
3. Your power of attorney
You can use an estate plan to manage your medical care and financial affairs if you become incapacitated prior to your death. A medical power of attorney can make medical decisions, such as end-of-life care, surgery and medication usage on your behalf, while the person with your financial power of attorney can pay your bills and access your accounts for you.
4. Trust protection
While a will can help decide who should benefit from your estate, a trust is a legal document that can protect your assets from estate taxes, probate, and challenges. As you plan out your estate, you can reach out for legal help to learn about your options.
