Include these 3 components in a simple estate plan

On Behalf of | Nov 1, 2021 | Estate Planning |

Having a Texas estate plan goes a long way in terms of ensuring your wishes with regard to health care, finances and asset distribution come to fruition. However, many people neglect to create such a plan, fearing it takes too much time or money or that they do not have enough assets to make it worthwhile. Yet, everyone, regardless of assets or income, benefits from having an estate plan in place. The plan does not have to be complex to help you accomplish the most important estate planning efforts.

Instead, Bankrate reports, a three-component estate plan may help you maximize how much of your estate winds up in the hands of your intended beneficiaries. It may also benefit you in other areas. When creating a simple state plan, consider including the following.

A simple will

Having a will helps you avoid having your assets tied up in courtroom proceedings. It also gives you a chance to stipulate who you want to take ownership of what. For a Texas will to have validity, you must be at least 18. You also have to have two witnesses present when you sign it. If you opt for an oral will, you need three witnesses present when you sign it.

A financial power of attorney

Giving someone power of attorney helps you minimize the chances of your beneficiaries having to cover debts and associated interest that might accrue after your death. The person you give power of attorney gains access to your bank and other financial accounts and affairs.

A health care directive

An advance health care directive allows you to state your healthcare-related wishes if you suffer incapacitation.

You may find that creating a simple estate plan takes far less time and money than you might imagine, and especially when you consider the many benefits involved.