People who draft wills are often ahead of their peers. Researchers have found that only approximately one in three adults have a will. Some people put estate planning off, while others think it isn’t necessary because state law protects their heirs.
The value of establishing a will is significant. Otherwise, the property belonging to an individual is subject to intestate succession laws when they die. Without a will, a deceased individual has little control over their legacy.
However, a will is only one document, and estate plans can help protect people in a broad assortment of different scenarios. Those who have a will or those who intend to create one may want to consider drafting the three documents below as well.
1. Powers of attorney
Some people experience medical emergencies. They end up in a coma or become unable to communicate because of medical issues. Powers of attorney help ensure that there is proper support for those experiencing incapacitation. The agent authorized by a power of attorney can address financial and medical matters on behalf of the incapacitated person.
2. A living will
Documents explaining medical wishes can be helpful when an emergency arises. A living will details an individual’s preferences regarding medical care. People can address life support and anatomical gifts within a living will, as well as several other medical decisions that can be difficult for family members to make. Living wills allow people to ensure they receive care that aligns with their values in an emergency.
3. Trust documents
There are numerous different types of trusts. Trust can be revocable or irrevocable. They can help people avoid estate taxes or make it easier for them to get medical benefits when they are vulnerable later in life.
Trusts can be useful for those worried about their finances or hoping to protect the inheritance of vulnerable beneficiaries. Some people add trusts to their estate plans in addition to a will. Others use trusts as their primary testamentary instrument to facilitate the transfer of their major assets.
Exploring the different estate planning tools available to them can help people implement the right estate plan given their goals. Those who draft robust estate plans may ensure better protection for themselves and their loved ones in a variety of situations.