There are a variety of different legal documents that people can draft as part of an estate plan. Many testators thinking about the future focus solely on wills. After all, a will can help people accomplish many of their top priorities in an estate planning scenario.
Wills allow people to name beneficiaries to inherit from their estates. The testator can also choose a personal representative to handle by naming them in a will. Those who have children can designate a guardian to care for their children should anything happen to them while their children are still minors. Although a will can do quite a bit, it does leave people exposed in certain ways. Most adults derive optimal protection from the creation of a robust estate plan involving a variety of different documents.
What additional issues other than beneficiary designations, choices for guardians and nominations for representatives, can people address in a thorough estate plan?
The possibility of a medical emergency
A car crash or stroke might be all it takes to leave an individual incapacitated. They may no longer be able to effectively communicate with others and may lack the legal capacity to take certain steps on their own behalf. A thorough estate plan can address the possibility of a medical emergency. People can draft powers of attorney to appoint another person to handle their financial affairs or oversee their medical treatment.
Advance directives can also be a useful inclusion in an estate plan. Advance directives can name a medical agent and can provide clear instructions about an individual’s medical preferences. They can leave guidance for their loved ones by explaining their wishes for matters ranging from life support to anatomical gifts. Planning for emergency situations can be beneficial for those who may end up vulnerable and for their loved ones who may struggle to know how to handle those situations.
Complex financial and legal situations
Thorough estate plans sometimes include trusts as a means of limiting conflict or granting the testator more control in a variety of situations. A trust can guide exactly what happens with their property after they pass by limiting how beneficiaries use inherited assets.
Trusts are useful in scenarios involving blended families or when testators believe there is a high likelihood of conflict among their beneficiaries after their passing. They can also help people qualify for certain benefits later in life or limit the likelihood of estate taxes after they die.
The decision to draft estate planning documents beyond just a will can provide an individual with legal protection, control over their legacy and peace of mind. Taking the time to add a variety of documents to an estate plan can help people address different challenging circumstances that may arise as they age or after they die.