What are some estate planning documents that you must have?
February 13, 2020
There is much more to estate planning than just drafting a will or creating a trust. An effective estate plan allows you to transfer all your assets to your beneficiaries seamlessly after your death. It should also let you name someone who can make all the decisions regarding your health and estate whenever you are not able to do so.
Estate planning does not have only one solution that can solve everything. There are several solutions that you may choose to incorporate to make the process easier for your inheritors. One solution you may want to use is by drafting a durable power of attorney. It helps in choosing someone to execute your estate on your behalf when you are not able to do so yourself. Without it, the court will determine what happens to your assets, which may not necessarily be to your liking.
According to Investopedia, a power of attorney document gives the agent you select the ability to get into transactions regarding the estate on your behalf and make any legal decision. You can revoke the certificate at any time.
Another document you may require is a letter of intent. Its purpose is to give your estate executor particular details on what you want to happen to your assets upon death. It may contain special requests as well as funeral plans.
Even though a letter of intent does not have any validity in-front of the law, it communicates each of your intentions. It may be of crucial help to a probate judge in the division of your assets, especially if a will is to be invalidated.
If you wish to appoint someone to make healthcare decisions on your behalf, you may need to establish a health care power of attorney. It is very different from a durable power of attorney that only deals with financial and legal matters. You may as well set up a living will that gives details about the type of care you want to receive when you are incapacitated.