Although it’s one of the most important things you can do for yourself and your loved ones, an estate plan isn’t always the simplest thing to create. There’s a lot of time, thought, and effort that must go into planning how you want your assets to be distributed, which may be one of the reasons why many Missouri residents die without a plan in place. It doesn’t have to be so daunting, however; take a look at five of the main components of an estate plan below to get a head start on securing your legacy and protecting your loved ones.
5 Estate Planning Components
Last Will and Testament
Creating a will is one of the most important elements in a strong estate plan. Your will is a legal document that allows you to decide how you want certain assets to be distributed after your death. In order for a will to be valid in Missouri, it must meet certain requirements. Remember that a will alone does not guarantee that your estate will stay out of probate.
Trusts
Trusts are another essential component in an estate plan, and the type of trusts you choose may be different depending on your wishes. A trust can be either revocable or irrevocable, meaning that you may or may not be able to make changes before the trust is administered.
Power of Attorney – General
Creating a Power of Attorney, or POA, may seem intimidating or unnecessary at first. However, POAs serve an important purpose in your estate plan. A general POA can only take action in the event that you become incapacitated, in which case he or she can make important financial decisions on your behalf.
Power of Attorney – Healthcare
Like a general POA, a healthcare directive allows you to assign someone you trust to make important healthcare decisions for you if you’re no longer able. With a healthcare POA, you can ensure that your end of life care decisions are handled according to your wishes.
Beneficiary Designations
When creating or updating your estate plan, be sure to review beneficiary designations and keep named beneficiaries up to date. You may want to review beneficiaries after major life events, including marriage, divorce, birth, or career changes.
Which Estate Planning Components Do You Need?
Remember that everyone’s situation is different, and wishes can vary greatly from person to person. Your estate plan may look entirely different from your neighbor’s – or it could be nearly the same. The best method to ensure that your estate plan will work as intended is to create one with the assistance of an estate planning attorney. There are many complex questions to consider during the estate planning process, and a skilled attorney will know which questions to ask.
Avoiding the stresses and expenses of probate is critical, so don’t hesitate to get started on your plan as soon as possible.Whether you’re in the beginning stages of estate planning or want to make some changes to your current plan, the Mark Harford Law team can help. We understand Missouri’s laws regarding estate planning and can work alongside you to create an estate plan that meets your needs and honors your wishes while avoiding common mistakes. Contact us today to get started!