5 Things You Must Have in Your Estate Plan
Estate planning is not just for the ultra-wealthy. If you own property, have a bank account, or have minor children, you need a plan in place to protect your family’s future. In this week’s 5 on Fridays, Mark Milton breaks down the five essential components every estate plan must include.
1. A Will (Specifically a Pour-Over Will)
A will is the foundation of your estate plan. It explicitly decides who gets your assets and, crucially, who will take care of your minor children if you pass away.
For most of our clients, we utilize a “pour-over will.” This means that upon your death, any assets not already in your trust will “pour over” into your trust to be managed according to your wishes.
2. A Living Revocable Trust
The primary benefit of a living revocable trust is that it allows your estate to avoid probate. By placing your assets into a trust, you save your family the time, expense, and public scrutiny of submitting your will to a probate court to be validated. The trust ensures your assets are distributed exactly how you want, without court interference.
3. A Durable (Legal) Power of Attorney
This document gives a trusted individual the legal authority to make financial and legal decisions on your behalf if you become incapacitated. Whether paying bills, managing investments, or handling real estate, this ensures your financial life doesn’t grind to a halt during an emergency.
4. A Healthcare Power of Attorney
Similar to the durable power of attorney, this document designates someone to make medical decisions for you if you cannot. It is important to note that the person you choose for your healthcare power of attorney does not have to be the same person you choose for your legal power of attorney—you can choose the best person for each specific role.
5. A Comprehensive Asset List
You can have the best legal documents in the world, but if your family doesn’t know where your assets are, it won’t matter. Keep a comprehensive, updated list of all your bank accounts, retirement accounts, and properties in your estate planning binder. Make sure any assets that need to be retitled into your trust are handled promptly so your plan functions as intended.
Ready to Start Your Estate Plan?
Taxes and estate planning go hand in hand, which makes Milton Law Group an ideal partner for protecting your assets. If you are ready to build a comprehensive estate plan, our team is here to help.