Most Important Estate Planning Documents
The reasons for procrastinating one’s estate plan are many. It is not pleasant to think about your own mortality. You would love to provide an inheritance for your children, but no matter your age, it is easy to feel that your children and their peers face such an uphill battle financially that any inheritance you can leave for them will not be enough to make a dent. When you think this way, you are operating under the mistaken assumption that estate planning is all about money. In fact, your estate plan is not only a plan to cover your expenses in your old age and to transfer ownership of your assets after you die; it is also a plan to prevent family conflict, now and after you are gone. Family ties are priceless, and the first step to giving your family the gift of being sure what decisions you would want them to make in the event of your death or serious illness is to contact an Orlando estate planning lawyer.
Last Will and Testament
How you want the probate court to distribute your assets after you die is your decision alone; you can name as many or as few beneficiaries as you choose. Family members, friends, and charities can inherit any assets you choose to designate for them. Even if you wish to leave your entire estate to your spouse and children, you still need a will. The will also indicates who should be the personal representative of your estate. If you wish to disinherit an estranged family member, the only way to make this happen is to indicate your wishes in your will. The only family member who can claim a bigger inheritance than your will indicates is your surviving spouse.
Your will should indicate all the assets you own, including online accounts. This will prevent a costly situation where a family member must reopen your estate upon discovering an asset of yours that no one knew existed.
Power of Attorney
A power of attorney (POA) authorizes someone else to make financial transactions on your behalf if you are unable to do so because of illness, among other reasons. You should sign a springing power of attorney, which means that it will go into effect when you become so ill that the court deems you legally incapable of making your own financial decisions.
Healthcare Advance Directive
A healthcare advance directive is like a POA, except about medical care. It includes instructions about end-of-life care and other medical decisions that your family will need to communicate on your behalf in the event of your serious illness.
Everything Else Can Wait
Yes, it is a good idea to set up a revocable trust. It is also never too early to make a retirement budget assuming that the amount of retirement savings you have now is all you will ever have, and another aspirational one that assumes that you will be able to save more. You don’t have to do that now, though; focus on preventing conflict first.
Contact Gierach and Gierach About Preventing Probate Disputes
An estate planning lawyer can help you draft a basic estate plan now and refine it later. Contact Gierach and Gierach, P.A. in Orlando, Florida to discuss your case.
Source:
kiplinger.com/personal-finance/the-basics-of-estate-planning
