Odds are that you know the benefits of having a last will and testament, and Forbes’ recent article entitled “Estate Documents You’ll Need Beyond A Last Will And Testament” says that, while this is a necessary aspect of your estate planning, it’s not the only documents you’ll want to have.
Let’s take a look at some of the other important estate planning documents.
A Living Trust. A living trust can limit the number of assets going through probate. Because a living trust is a revocable document, you can change it. A trust is designed to avoid or limit probate for the decedent’s assets, by creating a legally separate entity to hold property.
Living Will or Advance Directive. A living will or advance medical directive is often required by healthcare providers for certain medical procedures. However, this document should also be included within your estate plans. It tells your family and medical staff your wishes regarding lifesaving or life-prolonging medical procedures, in case you become unable to communicate with them.
Healthcare Power of Attorney. A power of attorney often consists of two documents. One is a healthcare power of attorney that lets you name someone to make healthcare decisions on your behalf. A power of attorney differs from the living will because your living will is only valid, if you’re unable to communicate your wishes.
Financial Power of Attorney. This document allows you to name a person to make financial decisions for you if you can’t and this doesn’t necessarily mean that you must be incapacitated. Many people use these when they are unavailable to sign documents.
Reference: Forbes (Feb. 18, 2022) “Estate Documents You’ll Need Beyond A Last Will And Testament”