Estate planning is a vital procedure where it involves providing instruction on how one’s property will be managed if he becomes incapacitated or dies. The specific documents you need may vary based on your individual circumstances, but here are some common estate planning documents that many people consider:
Last Will and Testament (Will):
The last will and testament is a document, which provides for allocation of property rights upon the owner’s death.
You can have it recorded, and name an executor to ensure that what you wished for is carried out.
Revocable Living Trust:
Trust is a legal structure which has the capacity to hold and distribute your property as you deem fit while you are alive through the guidance of the institution or other people whom your trust.
Under this living trust, you retain powers of your assets and may amend them while still alive.
Durable Power of Attorney:
A power of attorney is a document that enables someone else to conduct financial and legal matters if you are unable to do so due to mental reasons.
“Durable” means that your power of attorney continues even after it becomes apparent that you are mentally incapacitated.
Healthcare Power of Attorney (Healthcare Proxy):
You give proxy power of attorney to this document when making medical decisions on your behalf in case you cannot.
Your wishes in regard to the kind of treatment as well as life’s final moments may be incorporated.
Living Will (Advance Healthcare Directive):
A living will describes your preferences on medical care if you cannot communicate them yourself.
However, it focuses on questions about end-of-life options including your choice of lifesaving interventions.
Beneficiary Designations:
Update your named asset holders if you have one like a life insurance policy or a retirement account.
Such designations usually replace directions present in the will and trust.
The designations normally take precedence over any instructions in a will or a trust.
Letter of Instruction:
Though it is not a legal document, an instructional letter gives more direction to the executor and beneficiaries.
This can provide information on burial arrangement, where important documents are kept and any other relevant preference.
Guardianship Designations (if applicable):
You also get an opportunity to name guardians who will take care of any minor children once you’re gone.
You need to seek advice from an estate planning lawyer Perth just to make sure that your papers conform to the states rules and reflect, what do you want. The estate planning exercise is therefore not a single event, but rather iterative so you may wish to go through the documents every now and then, particularly following notable life incidents like marriage, divorce, birth of children or changing financial condition.
