Estate planning is a vital duty of an adult. All adults should have a comprehensive estate plan in place so they can continue taking care of their loved ones even after they pass on. This video mentions many of the common components of a comprehensive estate plan.
Many people think that estate planning has to do only with death, but this isn’t the case. An estate plan also takes care of the creator if they become incapacitated.
This is done through the appointment of a power of attorney for health care and one for finances. There’s also a medical directive that outlines the person’s wishes for all health care if they can’t speak up for themselves.
Trusts pass along assets to the beneficiaries named in the trust. The creator can set the terms for the distribution. Assets that are in trusts bypass the probate process, so the beneficiaries can get them faster.
Parents need to include a guardianship designation in their estate plan. This names someone to raise their children if both parents pass away.
An estate plan is personalized based on the creator’s wishes. Any adult who doesn’t have an estate plan should consult with an estate planning lawyer to get one written out.