What Is Estate Planning?
Estate planning is the process by which you are able to look at your assets and how you want to distribute those assets after your death – to your family, to other people in your life and/or to charitable organizations that you are passionate about. More than that, however, what you are going to find is that estate planning is a process that lets you look at your own health and well being and to take action that will ensure that your needs are met if you are unable to take care of yourself.
What Questions Will You Address When You Plan Your Estate?
There are a few key points to consider when you are ready to start the estate planning process:
- What is a will?
- How do you assign power of attorney and what are the different circumstances in which you need to do so?
- What is a living will?
- What is a trust?
Wills
A will is a document that names those who will receive your assets after your death – whether as a gift that the recipients will be able to use as they see fit or in a trust that will be administered in the way that you arrange. It allows you to name an executor who will manage your estate and guardians who will care for your children in the event that they are still minors at the time of your death. Writing a will allows you to take steps to have your wishes carried out after your death.
Power of Attorney
Power of attorney is a process by which individuals are able to authorize another person to act on their behalf under certain circumstances.
Living Wills
A living will – also known as an advance directive – includes instructions for the care that you want to receive under certain conditions. By creating a living will, you will be able to know that your wishes are carried out if you are incapacitated and unable to make decisions for yourself.
Trusts
A trust creates a bridge that allows you to pass on your assets while you are living and after your death so that you can be sure that your assets are used in a way that you are comfortable with.
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