We are giving you a sneak peek into next week’s topic covering the six different components of an Estate Plan, including a Durable Power of Attorney and the Will. Be sure to follow us on LinkedIN so you don’t miss out on this educational material on Estate Planning throughout the month of January.

 

What Is An Estate Plan?

An estate plan is a collection of documents that specify how you want your money and other assets distributed, making it easier for your loved ones to handle your affairs during a time of grief.

 

6 Major Components of an Estate Plan

  1. Beneficiary Designations – Written decisions you make concerning life insurance policies, retirement accounts and bank accounts. Beneficiary designations override the distributions set forth in your will and your trust.
  2. Trust – A legal entity separate from the person who forms it that holds assets for your named beneficiaries.
  3. The Will – A legal document with which the creator of the will (testator) can control the distribution of his or property at death.
  4. Durable Power of Attorney – In the event you become incapacitated, a power of attorney is a document that designates your person of choice, such as a spouse or adult child, to step in and manage your finances.
  5. Health Care Power of Attorney – This will name someone of your choosing to speak on your behalf when you cannot due to to a debilitating medical condition. Additionally, your Health Care Addendum or “living well” will set forth your philosophy and wishes as to whether to keep you alive in the event of a grave illness or injury.
  6. Regular Review and Revision – Review your estate plan from time to time and document any changes you require.