Most Americans lack an estate plan. To put it in another way, only one-third of them possess an established will or trust.
Some of the reasons why many people don’t have an estate plan are because they either procrastinated or they’re unsure about how to create one in the first place. If you’re a novice to estate planning, below are four basic components of a good estate plan.
For some families, their children are automatically their intended beneficiaries. But what if you don’t have children? You can make a beloved relative your beneficiary, which is ideal if they’ve been financially struggling for most of their lives.
A Power of Attorney
It’s crucial for you to appoint a power of attorney should you become incapacitated. Not having a power of attorney may force a court to dictate what happens to your property or funds, and they will likely carry it out in a way that goes against your wishes. This can be your spouse, a financial advisor or a good friend.
Guardianship for Minors
Unfortunately, some children lose their parents before reaching adulthood. If you have one or more children, speak with relatives or other trusted individuals to get their consent before establishing them as prospective guardians.
Funeral or Burial Arrangements
Though death is somewhat of a taboo subject, it’s something that happens to everyone eventually. Therefore, it’s essential for you to lay out specific instructions on your preferred funeral arrangements. It can be a grand affair, a small funeral or just a cremation.
Creating an estate plan gives you control over how your assets are handled. In addition, your beneficiaries benefit from any financial possessions they inherit. Do you need more information about the complexities of estate planning? It helps to reach out to experienced legal guidance to get answers to your questions.