Three Estate Planning Documents You Need To Know About and Consider Putting Together
Most people know they need a will, and at some point in their life, they will have one drafted up. If you’re looking to draft a will, then you need a competent attorney; someone who can discuss with you what a health care directive and a durable power of attorney are as well as a will. Each one of these documents are necessary basic estate documents that every person needs to consider.
A Look At The Basic Will
Most people think they need a will but the reality is… not everybody will need one. In fact, most people won’t get one put together until it makes perfect sense to actually get one written up. At the most general level, there are three sets of legal instructions that you will set forth for your relatives/friends to follow when you die.
1 – Instructions on how the property needs to be divided up.
2 – Appoint an estate executor who will handle the distribution of assets and deal with the payment of final expenses and debt.
3 – Appoint guardian to take care of your children or other folks unable to care for him/herself.
The attorney you hire must have a complete picture of both your financial and personal situation so that you can draft your will. The majority of attorneys will give you a questionnaire so you can fill it out and return it prior to the drafting. Be sure to fill it out entirely so the attorney won’t miss anything that’s crucial to your plan.
A Look At Power Of Attorney
If you’re ever unable to take care of your own business, do you know who would be in charge of everything? Most people don’t plan ahead, which leaves their loved ones to ask the court to decide who will be the person in charge of a person’s affairs. However, with some forethought, this can be avoided.
With a durable power of attorney, a person you choose is appointed to take care of all your affairs. You’re able to choose how much power this person, either to specific areas or to all areas.
A Look At Health Care Directive
This is when a person is appointed to make health decisions for you should you be unable to make these decisions yourself. This directive will give your agent instructions as to what kind of care you’re looking to have. You can also lay out plans for a burial/cremation and make decisions regarding the donation of your organs.
If you don’t make any of the decisions before something happens to you, somebody will make all the decisions for you. It usually involves the court making the decisions and could actually lead to family disputes. However, for a low price, you can have these documents in place in case something happens down the road.
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