What Documents Are Vital For Estate Planning?

What Documents Are Vital For Estate Planning?

First of all, you should know what estate planning is. There is a notion that estate planning means only drafting a will or a trust, which is completely wrong. It includes much more so that upon your death, your beneficiaries get all the assets fast and seamlessly.

Importance of Estate Planning

A successful estate planning allows a trusted person or organization to take control of your assets if you become physically or mentally incompetent to look into. This does not imply to the rich person only. Everybody can utilize it to ensure that his property, finances, or business transactions happen properly. And his heirs get their rightful properties after one’s death.

Without proper planning and supporting documents, the distribution will not be possible as per your wish because probate law will take the lead in that case. Through such planning, you can grant permission to your family members or power of attorney to carry out the distribution as you intended for even if you are alive but have become incapable.

The estate planning will not be valid without the documents below. Let’s check them out.

Wills and Trusts

People believe that wills and trusts are only for the wealthy individual because it is complex and costly. This is totally false. Rather, every estate planning should include wills or trusts or both to ensure a property distribution according to the individual’s wish. Only to have a will is not sufficient. Though, the wordings mentioned in the document are immensely crucial. So, it is always necessary to hire an attorney while drafting a will or trust to help you in using correct words. They will also help you format as well as protect your assets from legal challenges.

Power of Attorney

The second important point is to appoint a durable power of attorney (POA). This means you are assigning an individual or an organization to act on your behalf upon your death or even when you are alive but have lost competency to do it for yourself due to physical or mental illness. 

In the absence of power of attorney, the law will decide what to do with your assets, how to distribute it, which may not be the way you intended for.

Choosing a power of attorney assures that the business transactions, money matters, property distribution, and other valuable legal decisions will occur on your behalf as you want. POA is ideally nothing but a tool that will act as if it were you. Every decision of POA should be the best of your interests.         

Typically, in families, the spouse is chosen as a power of attorney to control the entire assets of an individual. However, any close relative, friend, or trusted advisor can act as the agent too.

Beneficiaries for Estate Planning

It is important to maintain a beneficiary and a contingent beneficiary in the will to transfer your assets after your death. Insurance plans should also include both beneficiary and contingent beneficiary because they are sometimes not counted in the will.

Without mentioning the name of your beneficiary, it is obvious that the court will pass your possessions as per the law because the judge is not aware of your preferences. Again if the beneficiary passes away, the court has the authority to decide on the distribution of your property and funds if not otherwise mentioned.

The beneficiaries should be of over 21 years of age to receive the inheritance. For a minor beneficiary, you can assign a guardian till he becomes 21 years.

Letter of Intent

This is basically a document as you have made for describing your intention with a particular asset. Your executor or beneficiary will have the letter of intent upon your death or incapacitation. In some letters of intents, you might find some special requests or wishes, such as funeral details of the individual or the medical expenses.

Estate Planning – Guardianship

In some wills and trusts, this clause is often overlooked. If the beneficiary is minor, it is extremely important to pick a guardian until he or she becomes 21 years. Make it a point that the guardian you choose is financially sound, well mannered, and respects your preferences. He can genuinely play the role of a guardian and raise the kid as you want.

Healthcare Power of attorney

This is an exceptional POA that designates another individual to make vital health care decision to suit you if you have any mental or physical incapacity.

Conclusion

In addition to these, you can also add other documents you feel helpful for estate planning.

Table of Contents

Disclaimer:

The information provided in this blog post is for general informational purposes only. All information on the site is provided in good faith. However, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the site.

Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the site or reliance on any information provided on the site. Your use of the site and your reliance on any information on the site is solely at your own risk.

This blog post does not constitute professional advice. The content is not meant to be a substitute for professional advice from a certified professional or specialist. Readers should consult professional help or seek expert advice before making any decisions based on the information provided in the blog.

aeecorp.net alianda.net giftsandflowersdelivery.com capnken.com chadgill.com mdkchild.com oconeefps.com vegchip.com localdentistnj.com pedare.org rushcover.com 10-10ths.com abvakabo.net personalattorneynewjersey.com graficas.us csteefel.com oqprogram.com hogchow.com nearmepersonalinjurylawyer.com exotechs.com slawson.net kengunn.com cosmeticdentistrybk.com dentistnearmetoday.com thescinc.com sensney.com porcelainveneersbrooklyn.com guyjamm.com actslab.com iklanpr.com dudedog.net jongery.com frogetha.com mayieka.com tahoerf.com namekeg.com skytudor.com digacomp.com elyrical.com abacobeachdivecenter.com zamichow.com fernworx.com rozei.org herzstein.org noniene.com webtvdoc.com arenauk.org omniali.net oolitic.net slimlife.org sentrabd.com gladych.com petrifiedtoad.com sourebh.com nslijhs.com tgspider.com lektura.org demycom.com ospreyam.com antacids.net mywebpad.com mvscrew.com lowellmovers.net gotshui.com locallawyerblog.com unimarts.com misrasi.com locallawyersnj.com alum-tek.com ubertor.net dental-aed.com medicalmalpracticeattorneybronx.com dentistnearmebronx.com defwords.com gocamden.com amprose.net mcamics.com webboss.org virdiusa.com medicalmalpracticelawyerbronx.com divinev.com lawyermarketingmiami.com nearmepersonalinjurylawyers.com medicalmallawyersbronx.com allaxion.com lphilton.com osaruman.com jaxguide.com thecall.net cssvoip.com bcsgifts.com plastron.net dentistnearmestatenisland.com popeafb.net bestbrooklynattorneys.com mrshines.com nearmeattorney.com dentistnearmequeens.com localseolawyers.com whysdmi.org lowratescarrental.com sjwalter.com dentalbrooklyn.net wofsmail.com spgurley.com omalawyers.com etalgom.com gmzbuyers.com cadsteam.com ewgapdx.com theellen.org jdevien.com booksavy.com dentalbrooklyn.info avitexas.com ebizthai.com localseodental.com castsoxs.com vr5xs6yh.com ridemoor.com brooklynadvanceddentalcare.com escorts-nyc.net personalinjuryattorneysnjs.com fastpawnonline.com toothimplantsbrooklyn.com rootcanalbrooklyn.com mearabia.com togtouch.com epcdaily.com timesfcu.com lawyersbk.com vaianisi.com cybewire.com giftsandflowersdirectory.com mooredns.com dentistnearmenewyork.com gp-beautysalon.com oxadrine.com boxsteps.com 3bliving.com psychdog.us foralbum.com eurofixpaintingandtile.com dentistrybk.com arielber.com akatonia.com ilcorail.com elitepersonalinjuryattorneys.com dentistnearmebrooklyn.com famsvane.com dentallabny.com nearmepersonalattorneys.com teethwhiteninginbrooklyn.com dentistnearmelongisland.com moversframingham.com mydentistbrooklyn.com colacake.com paradiselocksandkeys.com carsfile.com solapnet.com ausburyparkmovingcompanies.com dpfeeney.com nearmedentals.com homeinhb.com joeyspcs.com locallawyernyc.com icubeweb.com avifiles.com dentistbk.com regismfg.com bencamel.com playkiwi.com hosearch.com fondaciocanada.org click2classic.com nearmepersonalinjuryattorneys.com invisalignbrooklyn11229.com toothextractionbrooklyn.com locallawyersny.com siyangbi.com eriefsbo.com teserint.com gaiacred.com bigapplegoldbuyer.com homeimprovementgeneralcontractors.com tofuclan.com funeatin.com soldrite.com siyiyoga.com getmilko.com myhelong.com nearmepersonalinjuryattorney.com walibris.com etard.net arkrocks.com pansdora.com limmudtr.com lungsusa.org golisters.com newyorkaccidentslawyer.com greytblog.com ovolaw.com medicalmalpracticeattorneysbronx.com electionreceipt.com depsites.com opasm.org rcadss.com lamassio.com personalinjuryattorneysnys.com funemoney.com benramon.com izandoli.com leicsvle.com busiwebs.com coolnewt.com jrhome.org affirmers.org pvbgc.org localattorneynj.com sehah.org xtcplace.com djonfire.com epaops.org hometheatermiami.com peelseek.com jandavidson.net nappyboyent.net nygot.com ziggs.org uniquedayspa.net vistamro.com pdmanewengland.org ewanrose.com lawyersconsult.com grovepto.org disfilca.com artmystic.com ocany.org quarkpark.info paingold.com tactfoot.com marmasse.com iddmiami.com cdstrees.com lostel.com itxoft.com sparltech.com
On Key

Related Posts