Estate planning is the process of preparing for the management and disposal of your assets in the event of your death or incapacity. When planning your estate, there are a few key things that you must have in place in order to protect yourself and your loved ones.
A will ensures that your wishes are carried out after you die. It allows you to appoint a guardian for your minor children, and you can use it to distribute your assets according to your wishes. A will should include all of your assets, including real estate, personal property and financial accounts.
A trust is a legal estate planning entity that allows you to hold and manage your assets for the benefit of another person. Trusts are often used for a variety of purposes, including asset protection and tax planning. Trusts can be revocable or irrevocable. In other words, you can change the terms of the trust at any time, or you can make it so that the terms cannot get changed.
A power of attorney
A power of attorney is a legal document that gives someone else the authority to act on your behalf when you cannot. A power of attorney is often used for financial matters, such as managing your bank accounts or investing your money. You can also use it for medical decisions if you become incapacitated. The main thing to remember with a power of attorney is that you are giving someone else a great deal of responsibility, so it is important to choose someone who you trust implicitly.
There are many other estate planning tools available, but these are the three must-haves. With a will, trust and power of attorney in place, you can rest assured that your wishes will be carried out and your loved ones will be taken care of.