Five Basic but Important Estate Planning Documents
Life insurance death benefits transfer by contract, meaning that a beneficiary is assigned to the policy when it goes into effect. This is also the case with retirement accounts, annuities and pensions. Assets that transfer by contract are somewhat easy to settle, simply requiring some basic documents in most cases. For assets in an estate that do not transfer by contract, additional planning must be done to ensure a smooth transition after death. There are also important documents that can provide protection while you are living in the event of incapacitation. Here is a list of 5 basic but important estate planning documents and the benefits they provide.
Will – A will provides instructions for distributing the property you own, upon your death, through the probate process. It is important to have a will because it gives you the opportunity to name a guardian for minor children. It is best to work with an attorney who can draft a will that best meets all of your needs.
Durable Power of Attorney – A durable power of attorney gives you the right to name a person or organization to legally manage your personal and financial affairs should you become incapacitated. The person you appoint can handle a wide array of personal, legal and tax matters on your behalf.
Durable Power of Attorney for Health Care – This document is also called a health care directive or health care proxy in some cases. This document allows you to name a person who will make decisions on your behalf for medical care and end-of-life care if you are unable to do so. You should make sure that this person understands your view and wishes should they have to make any decisions on your behalf.
Living Will – A living will allows you to specify what medical procedures you would like done or withheld in the event you become incapacitated or terminally ill. It is simply based on your personal wishes and does involve appointing someone to speak on your behalf.
Revocable Living Trust – A Revocable living trust is an excellent way to avoid probate and keep the matters of your estate private upon your death. It can also provide flexibility since it is revocable until death. You can transfer assets into a revocable living trust and name a successor trustee who can distribute the assets in your manner of choosing at your death. They can also take over if you become incapacitated and handle the management of trust assets as well.
It is best to consult with an attorney, estate planner or CPA who can properly guide through the process of planning your estate and competently draft any of the documents needed. With proper planning, you can avoid unnecessary issues that can arise should you pass away or become incapacitated.
This post was meant to simply give a basic description of the documents listed above. Archstone Insurance Services, LLC does not offer formal estate planning or tax advice. We would welcome the opportunity to show you how we help our clients get the best life insurance rates available. We have access to over 40 insurance companies and will use all of our resources to get you the best coverage option available. If you have any questions, please feel free to give us a call at (888) 687-9444 or email us at info@archstoneagency.com.
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com. You can also visit our website at www.archstoneinsurance.com.
