You’re planning for your future and the future of your estate. One of the best ways to do this is by creating an estate plan. A drafted estate plan can help your family and friends know your final intentions. The main document in your estate plan is a will, which can instruct how your estate is settled after you pass away.
However, there’s a lot that’s asked of you as you draft your estate plan. You may need to ask a few questions before you finalize your draft. Here are some places to start:
1. Have you thought about every beneficiary?
A beneficiary is someone you can name in your estate plan who has a legal claim over your assets, per your plan. You can name just about anyone in your estate plan, including siblings, parents, friends and colleagues. It may help to make a list of people you wish to be involved in your estate plan.
2. Who is your executor of the estate?
Someone should be named in your estate plan to be responsible for the distribution of your estate. This person is called the executor of the estate. The executor does more than just locate beneficiaries and distribute assets, however. They’re often responsible for paying taxes, locating assets and reporting your passing to interested parties.
3. Did you name a power of attorney?
Estate planning isn’t just about asset distribution. You could also include a power of attorney in your plans. A power of attorney acts on your behalf if you’re incapacitated. They may handle your financial and medical decisions in hopes that you will recover.
There are a lot of things people forget to include in their estate plans and can make matters complicated when the time comes. It can help to reach out for legal guidance as you draft your will.