The holidays are all about making lists: lists of gifts, lists of who’s been naughty or nice, New Year’s resolution lists… And so why not include among these an estate planning checklist that ensures you have everything in place to complete your plan? After all, if you are an adult and you do not yet have an estate plan, you are behind and there is no better time to catch up than the present.
What is Estate Planning? (And Why is it So Important?)
Every adult regardless of their age or economic position needs an estate plan. The reason for this is simple: no one knows when they may suffer incapacitating injury or death and an estate plan protects against both. While no magic shield, an estate plan ensures your medical and economic well-being will remain in good hands and your life’s work will not be squandered should unforeseen tragedy strike.
An estate plan also protects your loved ones. Guardianship designations ensure minor dependents remain in the care of trusted loved ones. Beneficiary designations ensure your assets are efficiently and accurately distributed. And your plan as a whole minimizes the possibility that any irreparable family conflict erupt should you fall seriously ill or die.
While an experienced estate planning attorney is the best person to explain how this all works, the following estate planning checklist introduces the most important basics.
Estate Planning Checklist: Four Essential Documents
- Last Will and Testament
When you execute your Last Will and Testament you name a guardian for minor children and pets, list all personal property and decide to whom it will pass, and designate an executor to carry out these terms. Your will acts as a roadmap for loved ones to follow when you die and so it helps to let them in on its contents. An estate plan is best able to achieve its purpose of caring for your family if everyone understands the roles they have been assigned and grasps the intention behind your decisions.
- Financial Power of Attorney
A financial power of attorney allows you to designate a loved one or trusted advisor to manage your financial affairs should you suffer incapacitating injury. This means that happen what may, you will not fall behind on rent or bill payments or any other important transactions. In addition, your power of attorney may file a personal injury suit, apply for public benefits, or perform any other number of crucial financial tasks on your behalf.
- Advance Healthcare Directive
Like the above, this document allows you to designate a loved one to act in your stead though here, the powers concern medical instead of financial matters. An advance healthcare directive (sometimes referred to as a medical power of attorney) provides you the space to articulate the sort of care you wish (or wish not) to receive and the peace of mind of knowing these wishes will be respected.
- Trust
Trusts come in many shapes and sizes and serve many purposes. Avoiding probate court and ensuring the efficient (and private) distribution of assets are among the principal reasons to include a trust in your estate planning. A trust also helps if you are worried about a beneficiary’s spending habits or wish to plan around a loved one with special needs.
To learn more about estate planning basics or to speak with an experienced estate planning attorney about beginning the estate planning process today, do not hesitate to contact the Polaris Law Group either by calling 636-757-3850 or using the contact form on our webpage.
