What does your estate plan look like?
If your estate plan is incomplete, the government may provide one. However, most individuals prefer to make their own decisions regarding the inheritance of their home, investments, bank accounts, and the welfare of their pets and minor children.
To ensure you are following best practices for creating an estate plan that safeguards your loved ones and the assets you've worked hard to accumulate, begin by considering the following details:
Estate Planning with a Focus on Wills and Trusts
Government-provided probate and intestacy laws dictate how your assets are distributed and who gains guardianship of your minor children if you lack a valid estate plan. Probate can be a slow and costly process, potentially exposing your will and assets to public records. Furthermore, intestacy laws may lead to your property being inherited by estranged relatives.
A well-structured estate plan empowers you to decide who inherits your property and allows parents to designate a guardian for their minor children.
Transfer-on-death designations provide the flexibility to name primary and contingent beneficiaries for financial accounts and, in some cases, real property. These designations operate independently of and take precedence over a will.
A revocable living trust, one of the essential components of wills and trusts, enables you to retain control over your assets during your lifetime while avoiding probate court after your passing. This combination of wills and trusts ensures your wishes are protected and efficiently carried out.
Implementing Living Wills and Powers of Attorney
Ensuring your healthcare preferences are known to your medical providers and family is crucial. A living will or advance directive provides the necessary legal documents for this purpose.
Additionally, consider the importance of:
1. A healthcare power of attorney - designating someone you trust to make medical decisions on your behalf if you cannot do so.
2. A springing financial power of attorney - granting someone the authority to manage your finances in case you are unable to.
Embrace Flexibility in Your Estate Plan
As life evolves, so should your estate plan. Regularly reviewing it and making necessary adjustments with every significant life event ensures that your plan remains up-to-date and aligned with your intentions.
Secure Your Future with a Comprehensive Estate Plan
Don't leave your future to chance. Ensure that your wishes are carried out effectively by creating a comprehensive estate plan, which may include wills and trusts. The peace of mind that comes with knowing your loved ones are protected, and your assets are in good hands is invaluable. Contact us today to start building your secure tomorrow.
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Check out this episode on the Cash Flow Hacks Podcast: Estate Planning Essentials