What is an Estate Plan?
An estate plan is a collection of documents which protects your assets and personal property (your “estate”) and explains how you want to pass them down to your loved ones. It documents your wishes and specifies exactly who will guard those wishes and act on them in your absence.
What Does an Estate Plan Include?
What does the Estate Plan do?
1. Protects your assets for your family (or other heirs)
An estate plan can act as a safety net that helps preserve the value of your assets, minimizes wait times for disbursement, and helps ensure the legacy you envisioned is carried out.
2. Gives you a say in who receives your belongings
By creating a will, you can name your assets, beneficiaries, and an executor who will carry out your wishes after you pass away.
3. Allows you to choose who will make your decisions
An estate plan often contains a durable power of attorney form and a healthcare proxy form – two vital legal documents that ensure that your plan will be carried out the way you want it to. A durable power of attorney form appoints a trusted relative or friend to manage your legal and financial affairs should you become incapable. And a healthcare proxy form gives someone permission to make healthcare decisions for you based on your wishes if you’re unable to do so.
If you have a durable power of attorney or a healthcare proxy, it’s important to include that information on accounts such as IRAs, 401(k) plans, and insurance policies.