Most of us form a resolution in the New Year. While some may plan to complete their long unfinished novel, others may aim to buy a property. Well, some of us focus on legally creating our last will or preparing some estate planning documents.
Estate planning is a great way to protect you and your family during your lifetime and after death. In case you don’t plan this, post your death, your loved ones may conflict with your property, your estate may be tied up in a court dispute, and all this would call for huge money and time to resolve.
If you are someone looking towards estate planning, this article is for you. Read on to delve into major questions you need to answer, the documents you need for estate planning, and more. If you require legal guidance, reach out to a Las Vegas trust and estate lawyer.
In essence, finding the correct answers to nine questions (listed below) will pave the way for sound and effective estate planning.
Who do you think should make financial decisions in case you are unable to do so?
This means in case you are incapacitated, whom will you prefer to take care of your finances or make decisions on your behalf? It must be someone you can trust who can handle your bank accounts and pay the bills.
Who do you feel is the right person to make medical decisions in case you can’t?
In case you, unfortunately, are in a coma or other serious medical condition, who would be the right person to make medical or healthcare-related decisions like speaking to doctors, etc?
Are there any wishes for your end-of-life care?
While this is a difficult condition to imagine, however, in case you are suffering from a terminal health condition, what life-prolonging steps would you want to take?
What are your assets?
This means that you must know what you own – bank accounts, investments, retirement savings, property, or life insurance policies. For each of these, beneficiaries must be designated for those payable-on-death accounts.
Who are your beneficiaries?
While you may think that after your death, your property will go to your family members, if you don’t state it clearly in the will, the law may distribute it differently. Be clear on who you want to inherit your property. In case, your beneficiaries are minors, make arrangements for the money to be held in trust.
Who do you want to take care of your children?
In case you die when your children are minors, they would need a guardian. You should nominate a guardian for them rather than the state law or court doing so, as they don’t personally know your children or your family dynamic.
Who do you wish to take care of your pet(s)?
You must be clear on who you want to take care of your pet in case you die and if you would like to leave some money for the pet’s care.
Who do you want to manage the estate?
You need to nominate a personal representative or executor, who, in your absence, will take charge of your estate handling and maintenance.
Will you require insurance or long-term care insurance?
If you have young children or dependents, it’s wiser to go for term life insurance for them in case you die prematurely. Additionally, you may also take long-term care insurance for end-of-life care.
Once you have completed these nine questions, the next step is to prepare three documents that you will need. To have your estate planning in writing, you must have a financial power of attorney, a healthcare directive, and a will.
You can either hire an estate planning attorney to draft the documents or use an online legal form service company to create the necessary documentation.
In case, you have already completed your estate planning, it would still be good to review it and see if any update is needed in the will or other documents. Life changes create a need to reconsider certain decisions. Revisit your estate planning documents and check if you wish to change any of the beneficiaries, caregivers of pets, children’s guardians, or such.
