What is an estate plan?

You don't have to be uber wealthy to need an estate plan. In fact, any adult over the age of 18 should have one in place. When you take the time to set up an estate plan you are ensuring that your wishes are carried out if you were to become incapacitated and that your loved ones are taken care of in the future.

A basic estate plan includes a will, a durable power of attorney for financial and legal matters, and a health care power of attorney. It is also a good idea to idea to complete a HIPAA release form when setting up your estate plan to ensure any loved ones you wish to assist you with medical care can do so.

The primary purpose of a will is to designate who will inherit your assets when you die. If you do not create and execute a will, the laws of your home state or jurisdiction will dictate who receives your assets. The laws of intestacy (when a person dies without a will) may not carry out your wishes, as the laws determine which relatives or heirs will receive your assets. So, if you have a wish for certain assets to go to specific family members or loved ones, you should make sure you have a will in place that can carry out your plan.

Even if you do not have a lot of assets, a will is an important legal document for other reasons. For example, if you are a parent of minor children, you can use your will to designate guardians for your children if anything should happen to you. You can also set up a testamentary trust for your minor children in your will that will earmark funds to go to your children, as well as choose a trustee to manage those funds.

A durable power of attorney for financial and legal matters and health care power of attorney are two other crucial legal documents that all adults should have in place. If you were to become incapacitated, these two documents will allow you to designate an agent, someone you know and trust, who can act according to your wishes to manage your finances and make health care decisions for you.

It can feel overwhelming to think about this kind of planning. But not taking the steps to put a thoughtful plan in place can have consequences that you wouldn't wish for your family and loved ones.

If you are looking to set up an estate plan, book a consultation with Ozdeger Law. When you take time to put a plan in place, you will rest easy knowing you have taken care of your loved ones no matter what happens.