It’s a common misunderstanding that estate planning is something only wealthy people have to be concerned about. However, it will be extremely stressful and difficult for your family if you fail to have an estate plan. That’s why you need to know the most crucial documents for estate planning. This will guarantee every single one of your assets is seamlessly transferred to your family when you pass away.
Estate planning isn’t just about creating a will. There are several crucial documents you’ve got to know. Today, we’re going to share with you some of the most crucial estate planning documents,
It’s extremely crucial to determine a guardian if you’ve got kids who are dependents or minors. Oftentimes, this is ignored since young families don’t expect death. However, it’s important that you guarantee your kids are looked after.
You’ve got to ensure the guardian you pick is genuinely eager to raise your children. Also, it’s best to include a contingent or backup guardian as well.
Letter of Intent
The document you leave to your estate’s executor is known as a letter of intent. This document contains particular instructions. This can include your funeral plans, instructions to particular assets, and other unique requests.
A couple of your belongings can be passed to your family without being included in a will. For instance, your 401k and Insurance plans will need you to determine beneficiaries. A court might choose how to disburse any assets held within the accounts if you don’t determine beneficiaries or you don’t update them when needed.
Power of Attorney
It’s crucial to draft a power of attorney. This enables your hired agent to act on your behalf if you aren’t able to do so. A court might be left to choose what happens to your assets if you die. This is especially true if you don’t have power of attorney.
Power of attorney enables your agent to make other legal and health decisions, enter financial transactions, and transact real estate as if they were you. You can always specify the conditions for this document. You can also revoke the power at any time if you are still competent mentally.
Your partner is often the reasonable choice for power of attorney rights. On the other hand, it’s also common for other loved ones as well. This includes your siblings, kids, and other family members.
Trust and Will
A Trust or will is the primary aspect of all estate plans. This is particularly true if you don’t have any major assets. A trust can help to limited legal challenges and estate taxes. A will can guarantee your property is dispersed according to your plans.
Unfortunately, it isn’t enough to just have trust and will. You have to draft the document properly according to the laws in your state. In addition to that, the document also has to be drafted in a consistent way. Because of this, it is always ideal to hire a professional estate planning attorney to help you draft your will and trust.