While this may seem surprising, everyone has an estate. Your house, the land it sits on, and other assets make up one’s estate. The chief goal of creating an estate plan is to ensure your surviving spouse, children, and other family members are cared for and financially stable in the event of your passing.
The basic estate planning techniques include:
- Creating a will
- Assigning power of attorney
- Determining who will be your health care power of attorney
- Drafting a living will
- Creating a qualified disclaimer
An estate plan ensures your financial assets, real estate, and other properties and holdings are distributed in the way you prefer after your death.
Understand the Basic Techniques and Components of Estate Planning
Knowing the basic techniques involved in creating a comprehensive estate plan is only the first step on a complex journey. Understanding these techniques and the roles they play in your estate plan, providing for your family, and protecting your assets is another important step.
The American Bar Association provides the following explanations for various components of estate planning:
Making a Will
A will is a legal document that details your final wishes in regard to who inherits what from your estate after your death. A will also specifies the person you designate as the administrator of your estate. This is an important designation because your estate’s administrator is responsible for allocating your property and assets according to your final wishes.
Assigning Durable Power of Attorney
A durable power of attorney is a legally binding document that gives someone the power to act on your behalf and make decisions for you. A durable power of attorney is lasting and does not end when you become incapable of caring for yourself or making decisions on your own.
Determining Who Will Be Your Health Care Power of Attorney
A health care power of attorney is a legal document that allows you to choose someone you trust to act as your agent regarding your health care when you can no longer make decisions for yourself.
Drafting a Living Will
A living will is a written document that allows you to make your end-of-life needs known before you become incapacitated. It plainly states your wishes regarding life support and other forms of resuscitation when your death draws closer. A living will is sometimes referred to as an “advance directive.”
Creating a Qualified Disclaimer
A qualified disclaimer is a written refusal to accept a gift or an inheritance. When that happens, the gift must be passed to another party.
For a free legal consultation, call (614) 538-1116
Understand the Purpose of Planning Your Estate
Peace of mind is not the main goal of an estate plan, but it is an important factor. An estate plan makes provisions not only for the assets you have acquired but also for the people you care about.
Ohio State University defines the purpose of estate planning as taking preventive measures to care for your own needs and ensure your wishes are followed if you become incapable of taking care of yourself. An estate plan also lets you make sure your family is cared for after your passing.
An estate plan lets you plan for illness, retirement, and for the distribution of real estate, personal property, savings, and other financial assets. A lawyer can help put your final wishes into your estate plan.
Know Who Benefits from Estate Planning
As the owner of an estate, you benefit greatly from creating a will and establishing an estate plan. Estate planning gives you the opportunity to think about who receives what from your estate and decide who will care for specific family members after your death.
When you create an estate plan, your family members who depend on you can be assured of their future care. It can also benefit an incapacitated spouse if you predecease them, minor children, and disabled adult children who lack decision-making abilities. Additionally, an estate plan can limit or eliminate familial conflict, allowing everyone involved to respect your final wishes.
A Lawyer Can Help Put Your Affairs In Order
When you are ready to establish an estate plan for the disposition of your property and assets, your plans should start with an understanding of basic estate planning techniques. A lawyer can help you make important decisions based on the size and contents of your estate, as well as the number of friends and family members you wish to name in your estate plan.
Do not delay making your wishes known and sorting out the disposition of your estate. Contact the supportive staff at Bressman Law by calling (614) 538-1116 today.