Law

What are the critical elements of a sound estate plan?

An estate plan is a procedure to anticipate and arrange during a person’s life. It consists of documents that keep your assets and personal property safe. An estate plan also explains distributing your parcel to the next generation. It documents your wishes and specifies who can guard these documents. Most estate plans are set up with the help of an attorney or an estate planning lawyer.

Estate planning lawyer

An estate planning lawyer assists in planning procedures by putting your wishes for incapacity. An estate planning lawyer requires to determine how to preserve, manage and distribute finances after death. Estate planning lawyers manage individuals’ property and financial obligations. It involves drafting wills, trusts, and other documents to facilitate and manage the property after death.

If a person expires without a will, all their possessions will be distributed to their next kin. To assist in creating an estate plan, here are five essential components which you must know.

Will

Will is usually the first document you’ll think of when creating an estate plan. When you die, it shows to who you want to hand over your property and other assets. I will assist you in ensuring that your purchases have been appropriately distributed. If you have children, you have to state, you will express who you would like to serve as guardian after you’ve expired.

Trusts

Trust holds assets on behalf of beneficiaries. Several different types of trusts are available. The person who sets up the trust is supposed to tell when and who beneficiaries can receive assets. Revocable trusts can assist you in limiting exposure to estate taxes. You can also create trust inside your will. This is called the testamentary trust.

Power of Attorney

Attorneys prepare wills, trusts, and other estate planning documents once. After preparing the records, there is usually no need to revisit them. They stay the same despite the economic changes. The reason is that the plans and related documents should stay the same as you want. However, if you have the documents and want some changes, your attorney should review them carefully and determine the necessary updates.

Health Care Directives

Power of attorney and health care directives are similar to each other. The main difference between them is that power of attorney manages your financial dealings while healthcare directives tend to drive your medical decisions. A health care directive is a person who is responsible for making medical decisions on your behalf.

Beneficiary Designations

These documents are found on retirement and life insurance policies. Beneficiary designations tell about who will receive benefits if you expire. It is essential to review your beneficiary designations once a year.

You can indulge these documents in your estate plan. The best estate planning lawyer ensures your needs regularly. It’s always a good idea to take time with your estate planning lawyer before creating beneficiary designations. You can also have a conversation with your financial advisor so that everything will be carried out following your wishes.

A post by Randall B. Weil (1 Posts)

Randall B. Weil is author at LeraBlog. The author's views are entirely their own and may not reflect the views and opinions of LeraBlog staff.