Estate planning is beneficial for you and your family. Not only does it give you peace of mind about your assets, but your family can avoid uncertainty should you become incapacitated and after your death.
There are many options when planning your estate. An attorney can guide you through the process and ensure that all documents are legal. Here is a quick look at a few different estate planning options for you to consider.
Wills
A will provides written documentation of your wishes regarding estate management after your death. Wills should include the following information:
- Guardians of minor children
- Distribution of assets
- Your choice of executor
Most wills must go through probate, a court hearing, to legally distribute assets after your death.
Trusts
Putting assets in trusts avoids probate and has tax advantages. Trustees manage the assets in the trusts and distribute them to your beneficiaries as you choose. There are different types of trusts to consider, including:
- Irrevocable trusts
- Special needs trusts
- Revocable trusts
- Charitable trusts
- Living trusts
Each type of trust has advantages in different situations.
Powers of Attorney
If you become incapacitated due to an accident or illness, you might want a close family member or friend to make financial and medical decisions for you. A power of attorney is a document identifying who that person should be and what decisions he or she can make.
While most people do not want to think about becoming incapacitated or dying, planning for these situations benefits your family. Working with an attorney to organize your estate ensures you have a solid plan.
