Far too many people overlook the importance of having an estate plan in place. After one’s passing, the lack of any designations for assets can have a negative ripple effect that can even travel down to family members and loved ones.
This may become far more common in coming years as the baby boomer generation continues to age. It’s approximated that about 41% of their generation does not have a drafted will in place. Even beyond drafting a will, there are a number of estate planning documents that are vitally important to ensuring the proper handling of assets.
To make sure that all property and finances end up in the correct hands, here is an estate planning checklist to help keep them in order:
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- Power of Attorney: It’s not uncommon for elders to become ill with debilitating conditions that leave them in a state in which they are unable to make sound decisions. Before this occurs, designating a power of attorney can allow a trusted individual to make decisions on the agent’s behalf.Currently only about 38% of adults have a healthcare power of attorney. Likely the most important plan on this estate planning checklist, this document gives the designated individual, be it an estate lawyer or other trusted confidant, the ability to make decisions related to healthcare, which is essential in these cases considering the agent will likely require continued treatment.
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- Trust: If an agent finds themselves in a position where they desire to leave property to a beneficiary but are unable to do so at the time due to their age or other conflicts, a trust can be formed that allows a trustee to hold the property. They will then transfer the property to the beneficiary at the proper time.
- Living will: While a power of attorney can make decisions regarding healthcare, a living will is a document specifically drafted for the agent to state their end-of-life medical care wishes in cases where they become incapacitated when their passing does come.
Making a point to draft each document on this estate planning checklist could keep your assets safe, as well as prevent your family from sitting through six months of probate court, or even up to two years in complex cases.