As you consider the estate planning process, it’s important to have the following essential documents in place:
- An Up-to-Date Will or Living Trust
Your will is often first prepared when your children are young, ensuring the transfer of property to a surviving spouse and naming a guardian or trustee to care for and protect your children. As your children mature and your needs evolve, it is important to update your will to reflect new circumstances and challenges.
A Living Trust serves a similar purpose to a will but offers additional benefits. It’s a straightforward and flexible way to manage your property, allowing others to act on your behalf should the need arise. If your trust contains all your property, your estate can pass free of probate, simplifying the process for your loved ones.
A Durable Power of Attorney
Through this document, you appoint a person to manage your property if you become incapacitated. A Power of Attorney applies to property that you have not transferred into a Trust. Formal guardianships on your behalf are normally made unnecessary by this action.
A Living Will
Most states now authorize you to make a statement of your desires regarding medical treatment if you become terminally ill. Preferences about the use of “heroic efforts” and artificial life supports are frequently included.
A Health Care Power of Attorney
This document allows you to appoint a person to be your representative in making medical decisions for you at any time you are unable to make them yourself.