Estate planning is a collection of legal documents that outline what happens to your assets after you pass away or become incapacitated. Without an estate plan, the distribution of assets is typically left in the hands of the state. As a result, a testator’s last wishes may not be met, which can be greatly upsetting to friends, family and loved ones.
Many people put off making an estate plan because they have too many questions left unanswered. To fix that, you can read the following, which may resolve some of your issues with estate planning:
Question #1: Should an estate plan be updated?
Answer: Many people are left with the impression that once an estate plan is made, it will never need to be remade. However, it’s often in the best interest of everyone to have an estate plan updated frequently.
In most cases, people should update their estate plans yearly. Additionally, there may be several reasons for a sudden estate plan change, like divorce, marriage or childbirth.
Question #2: Are estate plans only for when you’re older?
Answer: Because an estate plan mostly focuses on what happens after your death, many people put off making one. However, not only could that create issues if someone ends up in a fatal accident, but, as stated above, an estate plan is also useful if someone’s incapacitated.
Included in an estate plan is a power of attorney designation, a representative that can act on behalf of the testator if they’re incapacitated.
Question #3: What’s the purpose of a trust?
Answer: A will often undergo probate, disputes and estate taxes. Many people don’t want this for their family and, thus, make trusts. A trust can ensure the distribution of assets doesn’t face any issues with probate. It can also allow you to have more control over how your assets are used by the next generation.
If you’re still left with questions about estate planning or you believe you need to make one, then you may need to reach out for legal help.