Beginning the estate planning journey can seem daunting, especially when you are not sure what to expect. In order to ensure enforceability and comprehensive planning coverage, you need a thorough estate plan.
There are a few key components that your estate plan may need.
Revocable living trust
A revocable living trust puts your designated assets into a trust until your death, at which time those assets go to the designated beneficiaries. The advantage of a revocable living trust is that you can modify it as needed throughout the entire rest of your life, allowing you to modify the assets in the trust, change beneficiary designations and make any other changes you need with ease.
With a revocable living trust, you also need a pour-over will. This ensures that any remaining assets you have at the time of your death are automatically transferred into your trust for your beneficiaries. This does not keep your will out of probate, but it does simplify the process.
Durable power of attorney
You are probably familiar with power of attorney, which provides someone the authority to act on your behalf. This expires if you become incapacitated or deceased. A durable power of attorney, on the other hand, remains active even after incapacitation. Establish durable power of attorney for your financial and healthcare directives.
Your estate plan should ease the stress and burden of your final years. Consider these elements to ensure that yours is complete and protects both your interests and those of your beneficiaries.