7 Critical Components in Any Estate Plan
When it's time to start thinking about creating an estate plan, you should focus on drafting a plan that makes sense for you and your family. At its core, an estate plan is put into effect to secure your family’s financial future in the case of sudden incapacitation or death. Without a plan in place, your property is subject to the intestacy laws of your area.
One of the great misconceptions about estate planning is that it's only necessary for those upper-class property owners with several vacation homes, luxury vehicles, and precious family heirlooms when nothing could be further from the truth. A comprehensive estate plan will benefit anyone willing to invest the time and effort into writing one. With an estate plan, you can provide for your family after your passing, ensure that your loved ones receive your property in a timely fashion, and can even help you prepare for retirement.
Even if your assets and wealth are limited, you’ll still want to avoid family disputes over any assets you do have. To mitigate any tensions between family members battling for ownership over your property, you’ll need to consult a law firm like wh Law, a North Little Rock law firm. These legal professionals will guide you through the paperwork process and address any contestations of your will or trust.
If you’re unfamiliar with the estate planning process, you’ll need to understand these seven key components necessary to give your estate plan proper standing.
A last will and testament
Don’t underestimate the importance of a last will and testament. Without the existence of a will, your family may weaponize your assets in a furious battle between your loved ones and the state where you reside.
Power of Attorney
Advanced Healthcare Directive
While most would prefer to avoid imagining the worst-case scenario, there’s always a chance you could find yourself injured by a severe health condition. Should that happen, you’ll want to elect someone you trust to make healthcare decisions on your behalf.
The best way to make sure you’ve granted authority to your proxy is to acquire and sign an advanced healthcare directive. You can collect the medical power of attorney forms from your state. Once you’ve picked up these forms, you’ll need to choose a healthcare agent, fill out the forms, and distribute copies to your loved ones, physicians, and healthcare agent.
Designated beneficiaries for non-probate assets
Letter of Instruction
Nominate a guardian for minor children
Nominate an executor
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