Since you completed your healthcare-related estate plan documents before you turned 24 (Go you! Or, if you are a bit behind on the estate planning timeline, check out the recommended Estate Planning Timeline for ages 18 to 24), you can now direct your attention to your finance-related estate plan documents. From assets to children, you’ve got a lot to keep tabs on; in the event that you pass and can no longer manage your most prized possessions, a well strategized estate plan can be a saving grace for your family.
Now that you have acquired more assets and grown your wealth, you must consider how these will be handled if you are incapacitated. While you have already planned for your healthcare needs, you now need to consider who will take care of your finances if you are incapacitated. By establishing your Durable Power of Attorney for Finances (POA for Finances), your finances will be in the hands of someone you trust if you are not able to handle them yourself.
- Durable Power of Attorney for Finances (POA for Finances) – Completing this document will allow you to establish an “agent” to legally care for your finances and conduct necessary financial transactions to protect your finances while you are unable to.
Finally, you need to create a plan for your estate after your passing. When a person dies without a Will or Trust, Probate Court evaluates their estate which can result in a lengthy and pricey process. Essentially, Probate Court is the hurdle laying in the way of your beneficiaries inheriting your assets directly. In order to avoid the slow and taxing process of Probate, you can proactively design an estate plan strategy to ensure swift inheritance by your beneficiaries. If you would like to expedite the process of probate, creating a Will is essential. To avoid Probate all together, consider if a Trustwould be right for you.
- Will – In order to guarantee your property and assets are distributed exactly as you wish after your passing, complete your Will to outline a set of instructions on how to leave your property upon death. Additionally, for parents of children under the age of 18, one of the greatest benefits of completing their estate planning early in life is the ability to establish Guardianship of Minor Children in a Will. Rather than leaving the placement of your children up to the courts, naming trusted guardians in your Will can be immensely beneficial to the future of your child if you are not there to raise them.
- Trust – If a Will is not sufficient to protect your property and assets through probate, a Trust can be created. The Trust acts as a contract that establishes who will manage assets, organize finances, and see through the distribution of your property to beneficiaries upon death.
Planning your estate early can make a world of difference to your loved ones upon your passing. While most people do not take advantage of the opportunity to plan their estate early, there is no better time than now to start planning. Remember, estate planning is not just for our grandparents, so call Konstantakis Law Office at (414) 427-6181 to plan your estate today!
