Having a comprehensive estate plan is important for everyone. It can help ensure that the estate planner's wishes are honored and provide peace of mind to both the estate planner and family members during a difficult time.
Estate planning is not only for wealthy individuals but is valuable for everyone to help them secure the future of their loved ones, ensure their wishes are fulfilled and that their assets are distributed according to those wishes. There are several different components of an effective estate plan that estate planners should be familiar with so they can determine which estate planning tools are best for them and establish an estate plan that works for them and their family.
Important estate planning tools include a variety of different documents. Every effective estate plan includes a validly executed will. Because state laws can vary, it is important for the estate planner to be familiar with the laws in their state when drafting an executing a will. Additionally, a trust can be another helpful component of an estate plan and because there are different types of trust, it is important to understand what those are and how they may be able to help in special circumstances including for minor children or others requiring care.
In addition, a health care proxy and durable power of attorney are also important to take care of the estate planner's healthcare and financial concerns if they become incapacitated. Estate planning can account for a variety of different situations and circumstances and ensure the concerns of the estate planner are addressed and that their loved ones are cared for.