3 Things You Should Consider Including In Your Estate Plan
Essential Considerations For Crafting An Effective Estate Plan
One of the toughest tasks people face is determining what they want in their estate lan. While all of us have different needs and desires, there are some things we should all consider including in our Estate Plan.
Estate planning is the preparation and distribution of a person’s possessions. Without an estate plan, your loved ones may end up fighting over who owns what, which can be very frustrating and costly.
Planning for an estate is important, and it can be a lot easier with an Arizona estate planning attorney. Check below the three most important things to consider so you can prepare an efficient Estate Plan for your family.
How Can You Tell If Your Spouse Is Hiding Assets?
A will is a legal document that establishes how you want your assets to be distributed after your death. It’s probably the most known estate planning tool, and it’s also mandatory for everyone, regardless of the size of their estate.
A will allows you to name an executor responsible for managing your estate and distributing your assets according to your wishes. Without a will, your assets will be distributed according to state law, which may not be in line with your wishes.
Plus, your loved ones will probably be worried about their assets after you pass away. When people don’t specify the asset distribution (including inheritance) and assume the state will do everything, they take the risk of their loved ones not receiving what they should.
It’s not difficult to confirm your inheritance and beneficiaries because a will doesn’t have to follow a strict protocol. Moreover, with a proper will, you can avoid family infighting.
It is important to note that a will is not a one-time document. You should review and update it regularly with your Tempe estate planning attorney to ensure it reflects your current wishes and circumstances. This is particularly important if there has been a significant change in your life, such as a marriage, divorce, birth of a child, or death of a loved one.
Trusts & Guardianships
A trust is a legal arrangement in which you transfer assets to a trustee who manages them to benefit (forgive the repetition) your beneficiaries.
You can use the trust to avoid probate, reduce estate taxes, and provide for the long-term care of a loved one. Trusts are a powerful estate planning tool that can help you achieve your goals and ensure that your assets are distributed according to your wishes.
It is important to work with an experienced estate planning attorney to determine if a trust is right for you. They can help you choose the right type of trust and ensure that you set it up correctly.
Guardianships are also crucial when preparing your Estate Plan. If a sudden injury or illness stops you from taking care of your children or vulnerable adult, choosing a guardian on time can guarantee that someone you trust will look after them. This is another topic you can discuss with your Mesa estate planning attorney to choose the right person.
Without guardianships, you take the risk of your dependents becoming part of a foster care system, so it’s much better to play it safe with proper documentation as soon as possible.
Powers of Attorney
A power of attorney is a legal document that allows you to appoint someone to make decisions on your behalf if you become incapacitated. There are two types of powers of attorney: a financial power of attorney and a medical power of attorney.
A financial power of attorney allows you to choose someone to manage your financial affairs if you cannot do it yourself. A medical power of attorney does the same but with medical decisions.
A medical power of attorney can include healthcare directives. Although estate planning seems valuable only after you pass on, it can also help you while you are alive. And one way of doing it is by forming a health care directive.
With the medical power of attorney, you can specify your medical wishes, including medical treatments and operations you consent to, how long you want to remain on life support, and if you wish to donate organs. You can do this document with the help of a Gilbert estate planning attorney.
Powers of attorney are important because they ensure that your affairs are managed by someone you trust if you become incapacitated.
It is important to choose your power of attorney carefully. The person you choose should be trustworthy, responsible, and willing to take on the role. You should also make sure that they understand your wishes and are willing to carry them out.
Finding A Trusted Lawyer
Remember that estate planning is not a one-time event. It is an ongoing process that requires regular review and updating. Make sure that your estate plan reflects your current wishes and circumstances, and work with an experienced estate planning attorney to ensure that your plan is set up correctly.
If you have more doubts about estate planning laws and trusts, contact My AZ Lawyers today. Feel free to visit our website for a no-obligation FREE consultation.
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