One of the most important documents necessary for estate planning is a will. A will can outline your last wishes, including how you wish for your estate to be managed after you pass away. Your will can also name beneficiaries who may potentially gain from your estate. And, you can name an executor of the estate who is responsible for settling the asset administration process.
Is a will the only document you need for an estate plan? While you could leave your estate plan with just a will, you could also add other important documents. Here is what you can do:
Protecting your assets
A will is meant to instruct how your assets are managed, but your assets could be taxed and your last wishes could be contested during the probate process. Instead of just making a will, you could reinforce asset protection with a trust. A trust is a legal arrangement that can help protect your assets from taxes and probate, and you can make special requests with the right legal language.
Planning for your future healthcare
While a will focuses on what happens after you pass away, you can also make plans for your future health care. A power of attorney or advance directive can be made to decide how you would be cared for if you developed a serious illness or suffered a catastrophic injury. Instead of leaving your health to others, you can make specific requests that fall in line with your best interests.
Estate planning is complicated. You can get legal guidance to help you draft documents for your estate plan.