Without an estate plan in place, you have little, if any, control over what happens to your affairs and assets after you die. Creating a thorough estate plan may help you maximize how much of a legacy you have to leave behind for your loved ones.
While a will is one element of a solid estate plan that outlines who you want to receive certain assets, there are other aspects of an estate plan that are also important. When crafting your estate plan, give consideration to the following areas.
Health care directives
A health care directive gives someone else you trust the ability to make medical decisions on your behalf. In the event that you become incapacitated, you may need this person to determine what care you should have, whether to keep you on life support and so on.
Durable power of attorney
While health care directives give someone the power to make health care-related decisions for you, a durable power of attorney gives someone the ability to make financial determinations on your behalf. If you become incapacitated and have not signed a durable power of attorney, a court may have to appoint a conservator to make these decisions for you.
Revocable living trusts
A revocable living trust is another estate planning document that allows you to leave assets behind while enjoying certain benefits. The assets you place inside the revocable living trust do not have to go through probate. This type of trust, which is amendable over time, may also help minimize estate taxes, and in doing so, maximize how much you are able to leave behind.
