Having a comprehensive estate plan that meets the needs of the estate planner is important. For that reason, the estate planner should be familiar with what estate planning documents they should consider including in their estate plan.
A will is an important part of an estate plan that is used to distribute the assets of the estate planner according to their wishes. It names the loved ones, or beneficiaries, the estate planner wishes to receive their assets and designates which assets or property goes to which beneficiaries.
A trust can be used in conjunction with a will or on its own and is a method of transferring assets that can avoid the probate process. Estate planners and their families may wish to avoid the probate process because it can be costly and time consuming.
Advance healthcare directive
An advance healthcare directive is an important part of an estate plan that is used to plan for incapacity. An advance healthcare directive includes the types of medical care and treatment the estate planner wishes to receive or does not wish to receive in the event they become incapacitated at some point.
Power of attorney
A power of attorney can be used for medical or financial purposes. A power of attorney designates a trust individual to handle the estate planner’s financial affairs if they are unable to do so for themselves. It can also be used to designate a trusted individual to handle the estate planner’s medical affairs if they are incapacitated; the individual designated may address medical care concerns not addressed in an advance healthcare directive.
There are a variety of legal requirements and technicalities associated with developing an estate plan that estate planners should be familiar with, including ensuring a will is valid. For that reason, estate planners should understand what to include in their estate plan and how to develop an estate plan that provides peace of mind for them and their families.