What is an Estate Plan?
An estate plan is a legal document that outlines your wishes for your assets after you die. It includes your will, power of attorney, and living will. A will is a legal document that states who you want to inherit your assets after you die. A power of attorney is a legal document that gives someone else the authority to make decisions on your behalf if you become incapacitated. A living will is a legal document that states your wishes for your medical care if you become unable to make decisions for yourself.
Why is it Important to Have an Estate Plan?
Having an estate plan is important for several reasons. First, it ensures that your wishes are carried out after you die. If you don’t have a will, your assets will be distributed according to your state’s laws of intestacy, which may not be what you want. Second, an estate plan can help to avoid probate, which is a court process that can be time-consuming and expensive. Third, an estate plan can help to protect your assets from creditors and lawsuits.
What is Included in an Estate Plan?
An estate plan can include a variety of documents, depending on your individual needs. Some common elements of an estate plan include:
- A will
- A power of attorney
- A living will
- A healthcare proxy
- A trust
- A durable power of attorney for finances
- A HIPAA release
How to Create an Estate Plan
There are a few different ways to create an estate plan. You can do it yourself, using a do-it-yourself kit, or you can work with an attorney. If you choose to do it yourself, it is important to make sure that you understand the legal requirements for your state. If you choose to work with an attorney, they will be able to help you create a plan that meets your specific needs.
Cost of an Estate Plan
The cost of an estate plan will vary depending on the complexity of your plan and the attorney you choose. In general, however, an estate plan is a relatively affordable investment. The cost of not having an estate plan, however, can be much higher.
Where to Get Help Creating an Estate Plan
There are a number of resources available to help you create an estate plan. You can talk to your attorney, financial advisor, or accountant. You can also find information online or at your local library.
Conclusion
Creating an estate plan is an important step in protecting your assets and ensuring that your wishes are carried out after you die. It is a relatively affordable investment that can save your loved one’s time, money, and stress. If you don’t have an estate plan, I encourage you to contact an attorney to get started.
Here are some additional tips for creating an estate plan:
- Be sure to update your plan regularly, especially if your circumstances change.
- Keep your plan in a safe place where your loved ones can find it.
- Let your loved ones know where your plan is located and how to access it.
- Review your plan with your attorney every few years to make sure it still meets your needs.
