A solid estate plan protects your assets after you are gone. It also ensures that your family continues to receive financial support in the form of assets and property.
Because each estate is different, it is important that your plan reflects your unique needs and situation. Accordingly, here are a few items to include in your estate plan for the best possible outcome.
Guardianship for children
Your last will and testament allows you to name a guardian for your children should the unthinkable happen. If you do not name a person, the court will do it for you. While the court makes all decisions regarding children with their best interests in mind, all parents would rather make this crucial decision on their own.
Long-term care plan
Estate plans can help you while you are still alive in the form of long-term care planning. Long-term care includes residence in a nursing home or securing the assistance of a home health aide. Most forms of health insurance do not cover these expenses, so you must secure additional insurance to meet your medical needs.
Trusts provide greater control over how you disperse assets to heirs. For instance, a trust allows you to specify an age at which your heir should receive their inheritance, which is not possible with a will. A trust also allows you to avoid probate, as assets pass directly to heirs according to the terms you stipulate.
Power of attorney
Powers of attorney are personal representatives who can make decisions on your behalf. If you cannot make medical or financial decisions on your own, this person will step in. Their authority can be broad, meaning they can make all sorts of decisions related to your life, or you can limit them to specific areas.
By including the right items in your estate plan, you can rest assured that your legacy will live on. You can also rest easy knowing that you will receive the right assistance should a major illness or injury occur.