Ultimate Guide to Estate Planning

What Is an Estate?

Simply put, an estate is all of your belongings, money, and investments. The word estate may sound like a term used to describe only the wealthy, but everyone, regardless of status, has an estate. Your estate is your home, car, bank account, furniture, antiques and collectibles, family heirlooms—everything you own.

For most people, a simple estate plan is all that is required to protect the estate and ensure that it is properly distributed after death. The estate plan may include a will, living will, healthcare power of attorney, financial power of attorney, and trust.

Think about your possessions and consider who you want to have them once you are gone. This may not be as easy as it seems. If you don’t specify who gets what, you may leave your family fighting over your belongings. Or worse—your estate could end up going to the state instead of a loved one.

There are several excuses people use to avoid estate planning. For example, one of the excuses is that you aren’t going to die. If you think you’re too busy to take care of it, understand that it only takes a few minutes to fill out the basic forms. If you don’t want to consider death, keep in mind that you will leave your loved ones in a difficult situation should you die without a will.

It’s better to be prepared and make sure your loved ones are properly taken care of than to die without a will.

What Is an Estate Plan?

An estate plan protects your family and property after you die or become incapacitated. A strong estate plan indicates decisions regarding your health care and disposition of property after you die. Everyone, regardless of age or status, simply needs an estate plan.

• Establishes who will acquire your belongings after your death.
• Names an executor to handle your affairs after death.
• Names guardians for minor children.
• Creates a less stressful time for relatives and loved ones after your death.
• Prepares for financial and medical decisions if you become unable to do so.
• Helps avoid probate court and significant fees. Maintain the value of your trust.

What Is a Last Will and Testament?

A last will and testament is a document that outlines the final wishes of an individual. It may include as much detail as you wish. A will provides a way to distribute your assets in the manner you prefer. A last will and testament is the most basic of these types of documents. It is also the easiest to create and implement. Get started now with LegalNature’s last will and testament form.

• Establishes who will acquire your belongings after your death.
• Names an executor to handle your affairs after death.
• Names guardians for minor children.

Your will allows you to choose who receives your inheritance and determines guardianship of minor children. Your will should be kept up to date. Always make sure that you make appropriate changes to your will when they are necessary. This ensures that your estate is properly distributed!

What Is a Living Will?

A living will is really not a will at all. It is actually a legal document that indicates how medical care should be administered at the end of life. The living will is also known as an advance directive or an advanced healthcare directive.

• How is a living will used?
• It does not take the place of a will or trust.
• It is used prior to death and has no use afterwards.
• It offers medical guidance to your loved ones.
• It is easy to create, even without a lawyer.

One of the biggest misconceptions about the living will is that it is difficult to create and implement. This is likely why so many people fail to put one into place. However, in actuality, the advance directive is a very simple and easy document. Get started today with LegalNature’s printable living will form.

• It contains information about:
• When to administer CPR and when to utilize a DNR (do not resuscitate) order.
• Whether to be put onto life support.
• When life support may be withdrawn.
• Whether to donate organs after death.

It’s very easy to set up a basic living will. You can fill out a legal advance directive form in just a few minutes. Use the form that is specifically provided to meet your state’s requirements. Avoid high legal fees by using our online living will form. It will need to be filled out, printed, and notarized with witnesses.

The living will can take effect immediately once it is signed or may be put into effect when the person is not able to communicate his or her wishes. Even when it is in place, doctors will follow your own personal communication as direction until and unless that is no longer possible.

What Is a Healthcare Power of Attorney?

Did you ever consider what would happen to you if you became incapacitated and were unable to make important healthcare decisions? It happens every day—in fact, according to the CDC (Centers for Disease Control and Prevention) 2.1 million people each year enter the critical care unit after visiting the emergency room. A healthcare power of attorney is a legal document that allows a person you choose to make healthcare decisions on your behalf.

A healthcare power of attorney is also known as a healthcare proxy, or healthcare directive. It is often used in conjunction with a living will, and in some states one document handles both functions.

• What does a healthcare power of attorney do:
• Names the person who is able to make healthcare decisions if you are unable to do so.
• States your personal desire for healthcare options.
• States your choices regarding organ donation.
• Lists instructions on how to handle your final arrangements.

What Is a Financial Power of Attorney?

If you were to become ill and unable to handle your finances, what would happen? For many people, the problem is all too real. You could lose your home, your car, or have your credit score negatively impacted. Yet, you can avoid any such potential problems with one simple document: a financial power of attorney.

The financial power of attorney lets you put someone in charge of your finances if you should become sick or debilitated. The person you name will be able to take charge of your finances on your behalf.

A power of attorney may be “durable” meaning that the person will take over if you are incapacitated. You may also choose to put someone in charge of your finances for a period of time. For example, if you are going to be out of the country for an extended period of time you may elect to give someone power of attorney to make payments, write checks, and take over finances while you are away.

It’s easy to set this up with LegalNature’s downloadable durable power of attorney form.

What Is a Trust?

A trust is a legal arrangement that allows a third party to hold assets on your behalf. The trustee is the person or entity that is designated to care for your assets. There are different ways that trusts may be arranged, depending on your needs. One of the main benefits of a trust is that it will usually allow the beneficiaries to avoid probate, thus giving loved ones faster and easier access to assets.

A trust may be revocable or irrevocable. A revocable trust is also called a revocable living trust. It offers more flexibility including the ability to make changes should they be necessary. An irrevocable trust may provide more tax benefits, but it cannot be changed once put into place.

Trusts offer a high degree of control over your assets and where they will end up. Probably the most important advantage of a trust is to provide tax protection. A trust usually holds your assets and property. You serve as the trustee of the trust during your life. After your death, another designated trustee takes charge.