There are those who procrastinate, feeling as though estate planning is something that is only relevant to individuals who have attained senior citizen status. In fact, all responsible adults should have some type of plan in place. Here we will take a look at the basic components of an effective modern estate plan.
Wills & Trusts
Clearly you must arrange for the distribution of your resources to your chosen heirs. This is often accomplished through the creation of a last Will, and this is indeed an option. However, there are other possibilities as well and the last Will is not always the best choice.
Many individuals will opt for a revocable living trust, largely because of the fact that it enables probate avoidance. The process of probate can be time-consuming and expensive and this is why people often steer clear of it.
Advance Health Care Directives
The advance health care directives that are typically included in a comprehensive estate plan are a living will and a durable power of attorney for health care. With the former document you state your wishes regarding the use of certain medical procedures; with the latter you empower someone of your choosing to make medical decisions in your behalf in the event of your incapacity.
In addition to medical decisions that may be necessary in the event of your incapacity personal and financial decisions can come into play as well. You could address this contingency by including a disability trustee if you choose to create a revocable living trust as a vehicle of asset transfer. A financial power of attorney may also be utilized when you are planning for possible incapacity.
All serious minded individuals should proceed with this basic underpinning in place. If you are currently unprepared, right now would be a good time to pick up the phone to arrange for a consultation with a licensed and experienced Cleveland OH estate planning lawyer.