About Estate and Will Planning

Regardless of your net worth, in order to protect your family and ensure that your financial goals are met after your death, it is imperative to have an estate plan and will in place. If you pass away without this, the state will decide how to divide the estate.

Have a Will

Every estate plan should include a will. This document states how assets should be divided at the time of your death. When a person dies without a will, they have no say in how their money and property will be dispersed. The state will decide this based on the laws in place at the time of death. A will is especially important for people with children. A will gives you the power to transfer guardianship of the children to the person of your choosing. Without this, a judge will make that decision.

Power of Attorney

Another aspect of estate planning is power of attorney. A power of attorney is a legal document that lets you choose an individual or organization to handle certain matters for you if you are unable to manage them yourself. There are different types of powers of attorney. The first is a general power of attorney. This allows the attorney-in-fact to represent you in a variety of situations such as financial arrangements, buying or selling property and entering into contracts. A limited power of attorney, on the other hand, provides authorization for the attorney-in-fact to act only in specific situations that you set forth.

Trusts

A trust gives you the power to put conditions on how and when assets will be distributed at the time of your death. A trust is a good option because it allows for the reduction of estate and gift taxes. It provides for the distribution of assets without the costs and delays associated with probate courts.