Do you know what estate planning is? Estate planning is the organization of your estate through a legal process that ensures your assets are distributed to your heirs, which can reduce disputes after you pass away.
Estate planning is a lot to handle at first, which is why many people have questions about the process. Here are some questions you may have about estate planning:
#1. When is the right time to make an estate plan?
Contrary to popular belief, there’s no right time to make an estate plan. Yet, it may be in your best interest to make an estate plan sooner rather than later. Many people delay making their estate plan until they’re much older, but, the truth is that anything can happen and an estate plan may be needed sooner than people think.
#2. What’s included in an estate plan?
There are several parts to an estate plan. The very first thing that many people make is a will, which mainly includes assets and heirs, but also an executor of the estate. You also need a power of attorney and a living will. Following that, many people create trusts in their estate plan.
#3. What’s the purpose of an executor of your estate?
An executor of the estate is a representative who ensures your assets are protected and in order for distribution. They also handle a lot of the tougher aspects of your passing, such as paying off taxes, debts and utilities and retrieving your death certificate. Essentially, they handle everything during the probate process.
#4. What’s probate?
Probate is the period of time when your estate plan is validated and beneficiaries are determined. This ensures that no one manufactured your will. Probate can take some time, sometimes even lasting up to a year, which is why people make trusts to avoid this process.
#5. Why should you have a power of attorney?
A power of attorney is a representative who makes financial and medical decisions on your behalf. They come into power if you become incapacitated.
#6. Should you seek legal help?
An estate plan is a complicated legal document with many intricacies. People can make wills by hand, however, these documents aren’t often valid. If you’re looking to make an estate plan, then you may need to consider reaching out for legal help.