Estate planning, and doing it right, is important for estate planners to understand. An effective estate plan can provide important protections for estate planners and their families which is why it is useful to be familiar with the estate planning documents that should be included in a comprehensive estate plan.
A will is a foundational component of an estate plan. It is important that your will complies with local laws, and that it is executed properly so it is valid. A will directs distribution of your estate to your beneficiaries. It also commonly names an executor and a guardian for any minor children you may have.
A trust can be used on its own or in conjunction with a will. A trust can make transferring the estate planner’s property easier and can also avoid the probate process. Trusts can be technical, so it is helpful for the estate planner to understand the benefits of a trust as part of their overall estate plan.
Advanced healthcare directive
An advanced healthcare directive can designate a trusted individual to handle the estate planner’s medical care and treatment if they are unable to do so. An advanced healthcare directive can also include the types of medical care and treatment the estate planner wishes to receive or does not wish to receive.
Power of attorney
A durable power of attorney can designate a trusted individual to handle the estate planner’s financial affairs if they become incapacitated and are unable to do so for themselves.
Estate planning should be approached with careful thought and care. For that reason, estate planners should be familiar with what they should include in their estate plan so it can be thoughtfully executed to achieve their purposes for it.