You have worked hard for everything you have, so you want to make sure your assets are protected after you have passed away or become incapacitated. Fortunately, that’s exactly what estate planning is for.
There are many factors that need to be resolved in estate planning cases; each one has its own specific documents and proceedings. Here are just a few of the ways you can plan for when your time comes.
- Wills: Most people know what a will is, and yet many aren’t sure how it works. A last will and testament essentially states what one’s final wishes are. One of the most common uses of a will is to designate what will happen to property after the agent dies. However, wills can also be used for a variety of legal help services, including naming an executor, appointing legal guardians for children, or deciding how taxes and debt will be paid back.
- Trusts: Estate planning trusts are used to to allow trustees appointed by the grantor to hold assets on the behalf of beneficiaries. Though trusts are similar to wills, trusts are often used to avoid probate. The legal help of avoiding probate can keep families from having to deal with extensive court proceedings to determine how assets will be managed, and from having to cover court and attorney fees from the assets.
- Power of attorney: A power of attorney allows a grantor to appoint an individual to make decisions on their behalf if they become incapacitated. This legal document allows the individual to make financial decisions, gift assets to beneficiaries or even recommend a guardian.
In some cases, a spouse will have control of the assets if no other estate plan is in place. But for those divorced, these documents can offer much legal help if the grantor doesn’t want divorcees to have control of assets. This is especially important if children are involved, even though about 66 percent of divorced couples in the U.S. are childless.
If you join the 44 percent to 49 percent of Harris Poll respondents who are likely to consult lawyers’ websites and pages where attorneys answer questions, you could quickly resolve all of the estate planning questions you may have.