An alarming number of people wait too long to do any estate planning. Even people of modest means should have a will, and it is vital for parents of young children. Estate planning basics include a will (or a will and corresponding trust), a durable power of attorney, and a healthcare power of attorney. These basic estate planning documents could save your family members thousands of dollars of expense and weeks of delay.
A will describes how a person wants to transfer property upon his or her death. In most states, people with modest means can use a form to create a simple will. The downside to creating your own will is that if you make an error that invalidates your will, it can cause much expense and delay for your heirs while the probate court decides what to do. People with net worth over $100,000 or a complex set of assets should not only have a will, but also a trust. The more complex your estate, the more important it becomes to work with a lawyer to create your estate plan.
A durable power of attorney declares that the person you designate will have the power to handle your financial affairs when you are unable to do so. It is “durable” because if created correctly, it survives both the lapse of time and the onset of your disability or incapacity. The person named as your durable power of attorney steps into your shoes at the time you are declared incapable of handling your finances and makes your financial decisions in your stead. Having a durable power of attorney can save your loved ones from arguing over money in a time of high emotions, and can keep the probate court from assigning a conservator to handle your financial affairs.
A medical power of attorney, also known as a durable power of attorney for health care, allows you to designate a person as your agent to make decisions about surgeries, life support equipment, or other health care choices when you are mentally or physically incapable of making those decisions.
Now is the best time to create an estate plan. No one enjoys planning for death or disability, but doing a little bit of planning now can save your family members from heartache and headaches later. Once your estate planning basics are documented and recorded in a safe place, you can always revise the documents later. Begin putting together your information today, and schedule an appointment to discuss it with an attorney like De La Riva Law.