You may think that estate planning is something you only need to think about later in life, but it’s actually never too early to create a comprehensive estate plan with a trusted attorney. This protects you, your family, and your assets in the event that something happens to you, and it gives clear instructions on what to do when you’re no longer here.
In this article, we’ll discuss the important components of a will, as well as some other estate planning basics.
Last Will and Testament
Your Last Will and Testament is the foundation of your estate plan, and it gives clear instructions on what to do with your assets after you pass away. This includes your properties, cars, stock portfolio, jewelry, bank accounts, and other valuables. You should also nominate an executor to oversee the distribution of your assets, designate a legal guardian for your child or children, and establish any trusts you want to create, all of which is contained in your Last Will and Testament.
A trust is a legal arrangement in which someone – a trustee who has been nominated – holds assets for the beneficiary, instead of the beneficiary holding the assets in their own name. Trusts are most often used for people with sizable assets or for those with more complicated financial situations, and they’re also beneficial for people who want to attach certain stipulations for the beneficiaries.
Did you know that a life insurance policy often pays a tax-free death benefit to your beneficiaries? These funds often help surviving family members pay for costs associated with the funeral, and for handling any remaining expenses. Ask your estate planning attorney which life insurance policies are best for you and how they can help your family in the event that something happens to you.
Financial Power of Attorney
Financial Power of Attorney (POA) is a legal agreement that designates someone else to make legal and financial decisions on your behalf. They can do things like pay your bills, move money around between your accounts, and make investments in several different situations. For example, if you become incapacitated due to illness, injury, or an accident and are no longer able to make finanical decisions for yourself, you want someone you trust paying your bills and making other financial decisions for you.
For more information about creating your estate plan, or if you have any other questions regarding trusts, please contact our team at SCC Legal today or visit our website at: https://www.scclegal.com/