Have you ever made an estate plan? If not, then you aren’t alone. Many people have not only never made a will but many pass away without one, which can create a lot of issues for their families. Without an estate plan, your estate would likely be distributed by the state, meaning your final wishes may not be followed.
If you’re thinking about making an estate plan, then you may need to know what’s included. Here are some of the main components:
A will is one of the most basic documents in an estate plan. This legal document outlines your final wishes and funeral arrangements. As such, you’ll likely have an itemization of your assets and beneficiaries named in your will.
While a will has many benefits, as stated above, there are some disadvantages. For example, most people have to wait until probate ends before they see any inheritance, which allows time for the will to be validated and other matters to be attended to. If you want to avoid this, then you may want to consider making a trust. A trust, similar to a will, can assign assets to heirs without probate or estate taxes.
An executor of the estate
Speaking of probate, your will can include an executor of your estate to distribute assets. They may be responsible for validating a will during the probate process and distributing assets. There are several matters your executor will handle, such as paying off unpaid debts, taxes or utility bills and making sure that your assets are protected until they go to your heirs.
Power of attorney
Last but not least, you may be able to name a power of attorney in your will. A power of attorney can huddle important matters if you’re incapacitated. Frequently, people give their powers of attorney responsibility over any financial and medical decisions.
Do you still have questions about estate planning? If so, then you may need to reach out for legal help. Your estate plan can be customized to meet your unique needs.