Key parts of an estate plan

Planning for the future is important, and creating a comprehensive estate plan is an important aspect of that preparation.

An estate plan ensures that your wishes are honored and your assets are distributed according to your preferences.

Last will and testament

Did you know that only 46% of Americans have a will? However, a last will and testament is the cornerstone of any estate plan. It outlines how you want your assets distributed after your passing and designates a guardian for any minor children.

Living will and healthcare power of attorney

A living will specifies your preferences for life-sustaining treatments, while a healthcare power of attorney designates someone to make medical decisions on your behalf. These documents provide guidance and ensure your healthcare preferences.

Financial power of attorney

A financial power of attorney grants authority to someone you trust to manage your financial affairs if you become incapacitated. This individual can pay your bills, manage your investments and make financial decisions on your behalf.

Beneficiary designations

Life insurance policies, bank accounts and retirement accounts allow you to designate beneficiaries, taking precedence over instructions in your will and ensuring a smooth and efficient transfer of these assets to your chosen recipients.

Revocable living trust

A revocable living trust allows you to manage and distribute your assets while maintaining control during your lifetime. Assets placed in the trust can bypass probate, streamlining the asset distribution process.

Letter of instruction

While not a legally binding document, a letter of instruction provides valuable guidance to your executor or beneficiaries. It can include details about your funeral preferences, the location of important documents and any specific wishes you may have.

By addressing these key components, you can create a robust estate plan that offers peace of mind for both you and your family.



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