Are you planning your estate? As you go through the estate planning process, it can help to create a checklist of everything you should consider including.
There are a lot of aspects that you can include in your estate plan. While you do not have to include everything, it may benefit you to learn about what you can include in your estate plan. Here is what you should know:
1. Will
The most common and important document in any estate plan is the will. A will is a document that outlines how you intend your estate to be managed after you pass away. This document often includes an itemization of your estate and people who should receive assets.
2. Trust
Alongside your will, you can make a trust. A trust is a document that allows you to protect your assets during and after your life. You can use a trust for many purposes, such as avoiding probate, estate taxes and challenges. A trust is often more secure than a will, but a will is still very useful.
3. Executor of the estate
Your will should include an executor of the estate. An executor is responsible for beginning the probate process, which is intended to help settle your estate. An executor helps fulfill your last wishes, mainly distributing your assets.
4. Power of attorney
If you have any life-threatening illnesses or injuries that leave you without the capability of caring for yourself, a power of attorney can act on your behalf. An agent can make healthcare and financial decisions for you in the hopes that you recover from your medical condition.
5. Child guardian
If you have a child, you could name a child guardian. A child guardian allows you to decide who should be responsible for caring for your child if you suffer from a fatal injury or illness.
You can talk about your estate planning options with legal guidance.
