Even though it is painful to consider, we will die away at some point, leaving our loved ones to pick up the pieces. The act of carrying out certain duties to set up a person’s assets in case they become incompetent or pass away is known as estate planning. The plan outlines how a person’s assets will be protected, handled, and distributed following death. These resources include items like money, stocks, automobiles, and homes. Making an estate plan makes life considerably simpler for your family and heirs. Boca Raton Estate Planning Attorney can provide you with all the necessary help.
- A testamentary document
The most crucial aspect of estate preparation is creating a will. A will is a legally binding document that specifies how one’s property and care of any minor children would be distributed upon death. The individual outlines his or her requests in the document and names an executor to execute them. The executor designated in the will should take the document to the county’s Register of Wills once the testator passes away. The executor of the will is then formally named by the Register of Wills, giving that person the authority to act on behalf of the decedent.
- Trust
A trust may go into effect immediately upon the grantor’s death or during their lifetime (Living Trust) (Testamentary Trust). It is a contract that permits a third party to hold onto assets on behalf of the beneficiary or beneficiaries, the intended recipient of the assets.
1. Revocable Trust: A Living Trust that can assist assets to pass outside of probate while allowing the trust’s founder (grantor) to maintain control over it while they are alive.
2. Irrevocable Trust: With this type of trust, assets are often moved out of the grantor’s estate and occasionally out of the reach of taxation. The grantor, however, shall not modify the trust after its execution.
- Living Will/Durable Health Care Power of Attorney
Suppose a person cannot make decisions for themselves or is otherwise incapacitated. In that case, they could execute a Durable Health Care Power of Attorney/Living Will to choose an agent to make such decisions on their behalf. The spouse, a close relative, or a close acquaintance is frequently the identified agent.
- Durable General Power of Attorney
A General Durable Power of Attorney grants a chosen agent wide authority to manage a person’s money and property, including the ability to sell the real or personal property without the owner’s knowledge or consent.
- Health Insurance
Death taxes, expenditures, buy-sell agreements, and retirement plan funding can all be covered by life insurance.
- Funeral expenses and plans
Some people could find this portion quite challenging to decide, but you should include your wishes for what should happen to your remains in your estate planning.
