Getting your affairs in order now may save your family hardship in the wake of your sudden death. Having an idea of what goes into a detailed estate plan may give you a head start on planning.
Estate planning goes beyond the scope of naming heirs. Take a look at some of the essential items you may want to include.
During a medical crisis, you may not have the mental or physical capacity to express your opinion regarding your medical care. An advance medical directive sets out your wishes regarding how you want medical care to go. It also allows you to designate the person to make medical choices for you. A living will is a form of advance directive.
The most fundamental document in an estate plan is your will. In it, you appoint the person who should carry out the decisions you make in the will regarding your financial and personal property. This administrator or executor may need to take your will and estate through probate court to pay debts and ensure that things get done as you indicate.
Durable power of attorney
Another item you may want to include in your estate plan is a durable power of attorney. This document grants a person of your choosing to act on your behalf regarding your finances. A power of attorney typically kicks in if you become unfit to handle finances responsibly. Much like a medical directive, it gives you the chance to appoint a person you feel is responsible enough to handle your affairs properly.
Estate planning may feel overwhelming. Armed with some basic knowledge, you can create something that will leave you and your family well cared for in a difficult time.