Many people still believe that their estate planning is finished if they have a will, but there is much more to having a solid estate plan. A plan must be designed so that probate is avoided and estate tax preparation is saved, and the assets are secure when you move into a nursing home, and appoint someone to be in charge for you if you become disabled.
The Last Will and Testament:
An estate plan usually has the last will, commonly referred to as a will, which includes using the assets you own during your death. It also allows you to name the people you would like to leave anything upon your death.
In many states, without a will, your assets will follow a process known as probate. That is in which the state decides how your assets would be distributed based on the state law. A will would allow the assets & family to avoid the probate process and be distributed as how you wish.
As you would be making plans to leave your assets to family & friends, think about discussing your plans with some of your closest and trustworthy heirs, not to make any disagreements or issues which can come after you pass away.
Healthcare Power of Attorney and Living Will
A healthcare power of attorney (HPOA) is known to be a legally signed document in which you can name a person as your healthcare decision-maker in a situation where you would not be able to make the decisions yourself.
A living will is also called an advanced medical directive, which outlines your wishes in the medical care in the situation where you would be incapacitated, ill, or not able to interact. It is a statement of the wishes that you have, as they would be relevant about the decisions of your life support and any medical intervention that you do or don’t want.
Estate Planning is one of the most important things you should take out time for a point in your life.