If you’re starting to work on a new estate plan, now is a great time to think about your top estate planning must-haves. Three of those should include your basic will and trust, powers of attorney and a letter of intent.
Why do you want to include those items? They provide you with the most coverage and protection. Your basic will or trust helps control your assets, your powers of attorney protect you during the end of your life, and your letter of intent makes sure that others listen to what your wishes were and get the clarity they need.
The importance of a strong will or trust
It is important for you to have a will or trust that will protect your property and make sure it’s distributed in the way that you’d like. These documents are legally binding and can be upheld and enforced by a court as long as they are drawn up correctly.
The necessity of powers of attorney
Power of attorney documents help you assign people to roles where they can help you during your lifetime. For example, a healthcare power of attorney assigns someone to make healthcare decisions for you if you are unable to do so yourself. A financial power of attorney lets someone make financial decisions for you. Both are extremely important.
Defining your meaning with a letter of intent
Sometimes, people will argue over assets and refuse to understand why a loved one didn’t leave them what they expected. Your letter of intent can make your wishes clearer, so there are fewer arguments or complaints after you pass away. From describing how you want your assets to be passed on to special requests for your funeral, this letter can contain it all.
These are three items that are beneficial if you have them in your estate plan. Everyone has different circumstances, but you should remember that these basic protections are used in most estate plans to provide the maximum amount of protection for you and your assets. These and other legal options may be available, so your life and property are handled correctly.