Are you only considering will and life insurance while organizing your estate planning documents? You need to think beyond them for estate planning success! Older adults usually believe that having an estate plan implies drafting a will or a trust. Still, there’s much more to add to your estate planning to ensure every asset seamlessly transfers to your inheritance upon your death.
As 70% of elderly parents in Harrisburg often don’t have an estate plan document or a will, Keystone Elder Law is a well-known partner in long-term care and estate planning, providing access to or managing your assets. In case you have underage kids, an estate plan is vital as it will list their guardians. A holistic estate plan usually consists of some of the major estate planning documents, which are the following:
1.Financial power of attorney
With an economic power of attorney, you can delegate legal authority to someone to regulate your finances and property. These tasks include making bank deposits, paying bills, and handling real estate property. If you need medical assistance, a financial agent can employ your acquisitions to pay your medical bills and guide your family if you’re incapacitated. Your financial and healthcare agent can work simultaneously to ensure you can afford the medical facility.
2.Wills and trusts
This might sound bizarre or complicated, which is something affluent people have! But this is an incorrect statement! A will and trust must be the significant components of every estate plan, even though you don’t have massive assets. Will ensure the property is handed over as per your wishes if drafted as per state laws. Some trusts help restrict estate taxes or legal obligations. Nevertheless, having a will or trust isn’t sufficient, and the wording of the documents is vital. A trust or will must be written consistently with how you have bequeathed the possessions that pass outside the will.
3.Advance care directives tackle your health
An advance directive for health care is a written statement of your preferences for medical treatment and final care if you are incompetent in making those choices for yourself. You can tell exactly what you do or don’t want, for instance, feeding tubes or ventilators. This document is often termed a living will. In some states in the USA, including Harrisburg, you can add the individual you opt for to make the decisions for you.
4.Insurance policies and financial details
Keeping every insurance policy document together includes life, car, health, and home. You must keep a list of your financial instructions and accounts to access them. This encloses credit cards, bank accounts, loans, mortgages, tax returns, retirement amenities, pension plans, and investment portfolios. You can store this information in an Excel Spreadsheet or write it in a notebook and keep it with your estate planning records.
5.Beneficiary designations
Several possessions can pass to your inheritance without being dictated in the will, for example, 401(k). This is why it’s vital to maintain a beneficiary and a contingent beneficiary. Insurance plans must consist of a contingent beneficiary and beneficiary since they might also pass outside of a will. A court may be challenged to determine what happens to your money if you don’t designate a beneficiary or if the beneficiary is dead or incapable of serving.
Conclusion
Once you have all these aforementioned estate planning documents, you must store them in an accessible and safe place. Give a copy of these documents to the faithful people who might need them. Life is changing now and then, so your estate plan will keep changing. You must revisit your estate plan every 3-5 years or whenever a significant life event happens, such as buying a property or getting married.