An effective estate planning does not have to be complex even if the process seems to be challenging for most. There are several basic components of a successful estate plan. Distribution of property at some point is unavoidable and an effective estate plan allows estate planners to determine how their property and assets will be distributed rather than state laws determining how property is distributed without a will or other estate planning tools such as a trust.
In addition to property distribution, an estate plan can help ensure the wishes of the estate planner are fulfilled related to medical treatment and financial matters should the estate planner become incapacitated at some point. Estate planning tools that are part of an effective estate plan includes a will, a medical power of attorney, a statutory durable power of attorney, a health care directive and a Health Insurance Portability and Accountability Act or HIPAA release.
It can also be helpful to name an executor or a guardian for children, which an estate plan can also include. Families may also want to be aware of the probate process and be prepared for that. Effective estate planning, using a few simple estate planning tools, can provide peace of mind for estate planners and their families. There are several basic components an estate plan should include and additional estate planning tools may also be helpful depending on the estate planner’s circumstances.
It is important to prepare an estate plan in advance, which allows the estate planner to lay out their wishes and ensure those wishes are adhered to. An effective estate plan provides protections and allows an estate planner to relax knowing their concerns will be addressed how they would like them to be handled.