Many individuals believe that having an estate plan is just about drafting a will or trust. However, many didn’t know that there is much more to consider in estate planning to make sure that all the assets are seamlessly transferred to the inheritor upon your death.
A successful estate plan includes provisions to ensure that the member of the family can have access or control to the assets before becoming disabled.
Here is a list of important things every estate plan should have:
Letter of Intent
A letter of intent is a document provided by you to a beneficiary or your executor. Its purpose is to identify what you want to do with a particular asset after your death. Some documents might not be valid in the eyes of the law. It can also help in distributing the assets if the will is considered invalid for some reason.
The Power of Attorney Designations
It is necessary to outline a durable power of attorney so that a person you assign can do your responsibilities in the event of your disability.
If you have children or if you are considering the idea of having kids, getting a guardian is vital. Make sure that the couple or individual you select shares your views, and is truly willing to raise children.
Wills and Trusts
The will and trust are the main factors of each estate plan, even if you do not have many properties. Wills can help assure that assets are transferred according to the person’s wishes. Some trusts can help limit legal challenges or estate taxes.
Some possessions can transfer to your inheritor without being indicated in the will. That’s why it is essential to sustain a beneficiary on such an account.
There is more to estate planning than just setting on how to divide all your assets when you die. It is also about making sure that the member of your family and other beneficiaries have access to your properties upon your permanent or temporary disability.