As you reach the golden years, it is only natural to think of the future and how to ensure your loved ones are provided for after you are gone. Although most individuals put off the idea of creating an estate plan, it is a crucial step to safeguard your legacy and assets.
What are the key components of estate planning?
While estate planning can seem daunting, it lets you be in control of how to distribute your assets even after you pass away. Although a complex legal process, there are primary tasks you need to prioritize:
Inventory of assets
List all your assets, including real estate properties, bank accounts, investments and insurance plans. Knowing your estate’s value is the first step in deciding how to distribute it.
Prepare a will
A will is a legal document that outlines the distribution of your assets. It specifies the beneficiaries of your assets and who will take on the role of executor (or the individual overseeing the administration of your estate).
Consider a power of attorney (POA)
A power of attorney allows an individual to act on your behalf temporarily or permanently as your agent. In the event of your incapacitation or absence, an agent will make the decisions and appearance instead of you.
A durable power of attorney for healthcare directives
This allows senior citizens to select someone they trust to make healthcare decisions on their behalf if they cannot do it themselves.
Beneficiary designation and executor roles
Naming a beneficiary is essential in estate planning as this ensures the proper distribution of assets after you are gone. Choosing an executor trustworthy enough to manage your assets would be best despite your absence.
Estate planning varies for each family and there is no “one-size-fits-all” approach. It may be best to seek a legal professional to help you tailor a plan that reflects your unique circumstances. Taking the initiative to create an estate plan ensures a safeguarded legacy that gives you peace of mind in the future.
