Estate planning is an integral part of having peace of mind. You can rest assured that your assets, investments, and real estate are accounted for when you have a secure estate plan. Additionally, being prepared ensures that your loved ones are cared for when you are no longer around.
Below, we will go over some key frequently asked questions regarding estate planning.
What is estate planning?
Estate planning enables you to make important personal decisions about how your assets should be managed and distributed once you pass away or if you become unable to do it yourself. This plan will include things like who gets what property or what percentage of the property they get, or who needs to make decisions in your life in case you become unable. Having this planned out can help your family considerably during a difficult time. It is imperative to make your wishes known so that the state does not have to decide how to handle your properties and assets.
What should my estate plan contain?
A basic plan should contain the following:
- A will: This document states how your assets should be distributed.
- An advanced health care directive: This is also known as a living will. This will state what the health care directive will take care of you if you are still alive but unable to make decisions. This agent will be allowed to have access to your medical data.
- A power of attorney: The person you appoint to take this role will be able to make financial decisions that are needed.
- Designation of guardian: This step is essential if you have children younger than 18. This will appoint the person who will be their legal guardian and will have the authority to make decisions for them.
What is an executor?
The person who will execute all of the above is an executor. This means that it is their responsibility to ensure that everything in your plan is addressed and managed.
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