Estate planning is something that many adults know they should handle, but that they often put off as long as possible. The fact is that if you need to create an estate plan, you should get it done as soon as possible.
If you’re embarking on the estate planning process for the first time, there are some important considerations that you must think about when you start. These may help to make the process easier and can make it easier for you to do what’s best for your circumstances.
Asset distribution
Asset distribution is one of the primary reasons for an estate plan. This is done through your will and trusts. Your will has to go through probate, so that will delay your beneficiaries receiving their inheritance.
Trusts don’t have to go through that process, so the beneficiaries can receive what they’re due faster. This also helps to keep the details of what people receive private, which may protect your loved ones. Certain trusts, those that are irrevocable, also provide protection from creditors.
Possible incapacitation
Estate planning can also include instructions for what should happen if you become legally incapacitated. You should choose someone who can make your medical decisions and someone who can make your financial decisions. The individual for each, who can be the same for both, should be given a power of attorney designation. This enables them to make those decisions for you.
You should also set up the advanced directive that outlines your medical care wishes. This can include specific things you want and don’t want. For example, you may want to decline being placed on life support or note that you want artificial nutrition.
A comprehensive estate plan is critical for all adults, so you should take the time to work with someone who can assist you with putting it all together. Ideally, you’ll get this done as quickly as possible so you have peace of mind. This can also provide your loved ones with the assurance that they won’t have to worry about how to handle situations if you become incapacitated or pass away.