4 Estate Planning Documents Every Family Should Have

When you feel it’s time to look over estate planning documents, do you know which documents best protect your assets and loved ones? The planning can be a bit overwhelming, especially with it dealing with life after death. But now you don’t need to worry.

Here is everything about the 4 essential documents in estate planning and how receiving legal help can relieve some of the planning stress.

Introduction

Thinking about end-of-life stuff is often difficult. But, if you want to rest easy knowing that your wishes will be carried out and your loved ones will be taken care of when the time comes, then it is something that must be done.

We never know how much time we are going to have or when an emergency may arise. Therefore, get a jump start on your estate planning now. The more prepared you are, the easier things will be on your family in the future.

Because estate planning is not something we do regularly, there are always some misconceptions when it comes to which documents are needed and how they are to be properly completed. While obtaining direction from an estate planning expert in the legal field can be a crucial step in the process, we’ve put together a list of the 4 estate planning documents that every family should have.

1. Will

The terms will and estate planning often go hand-in-hand. It makes sense since you are planning what happens to your estate after you die and a will is what generally provides this information. But, it is important to understand that a will is much more intricate than that.

A will is a legal document that is used to divvy up your property upon your death. By completing this document, you have the power to say who gets what assets of your estate. Without one? Well, let’s just say that the State of California’s Rules of Intestate Succession will make that determination for you.

Here’s a piece of the puzzle that many people get wrong – there are many sample wills online that you can print out. And many people do. But, in order for the will to be effective, it has to be admitted to the probate courts in California. If, when the will is needed, there are any discrepancies or questions, the estate could be facing a long, costly case in the court system.

The most common step in effective estate planning in California is to have created a will and a living trust. Together, you get the most benefit.

2. Living Trust

This trust – sometimes referred to as a living revocable trust – is one that acts as the owner of your assets while you are still alive. However, when it is established, plans are made as to how the estate will be distributed after you die. A living trust often holds things like real estate, motor vehicles, bank accounts, pieces of art and jewelry, intellectual property, and other investments.

Once you establish one of these trusts, you essentially no longer “own” your assets – the trust does. Assuming it is revocable, throughout your life, you can make changes to the trust, adding and removing assets.

As stated above, a living trust is a great addition to a simple will. This trust will name a trustee who is in charge of distributing assets immediately after death. This timely tie-up of loose ends makes the grief process much easier for loved ones left behind. And, there is no need to deal with the whole probate process.

It is important to note that there are various types of trusts that serve different purposes. It is best to speak with an experienced attorney to ensure you are handling your affairs as you intend.

3. Advanced Healthcare Directive

A statutory advanced health care directive form has been enacted by the State of California. This form is used to give specific directions as to your preferred care – and it appoints someone to make these decisions when you cannot. It comes with a few different sections.

Part 1: This is the power of attorney for your health care. It grants authority to a specific person that you name to make decisions over your medical care. Never fill out this form without having a full understanding of what you are signing.

Part 2: This is where you give the specific directions that you want your medical team to comply with. The person stated in part 1 must follow these directions. Perhaps the biggest aspect of this section is your desire when it comes to life-sustaining treatment – do you want it and under what circumstances?

Parts 3 & 4: These sections discuss organ donation and if you want to designate a primary physician. You don’t have to complete these sections, but just know that, if you don’t, the person in part 1 may have to make these decisions for you.

4. Durable Power of Attorney

Sometimes we may face a circumstance in life when we are still alive, but we are unable – for one reason or another – to make decisions regarding our life. Designating a trusted individual grants authority to a specified person, allowing him or her to make financial and property decisions on your behalf. Of course, this means you will want to make sure the individual you choose is a trustworthy option that knows what you would do if you could.

Having a durable power of attorney in place so that someone can handle your affairs when you can’t is an absolute must-have when you are doing your estate planning. With this general POA, you can choose when it becomes effective or whether it simply remains effective. Work with an attorney to structure the form so that it best meets your needs.

Consult the Experts

It is important to remember that estate planning involves some incredibly important details. Making one small error can cause your entire plan to be thrown off. Don’t risk finding yourself in this scenario. Instead, be prepared and have all your documents in order before it is too late.

With the guidance of an experienced lawyer, you can make sure that you have everything properly in order so that you never leave yourself vulnerable in an end-of-life situation.

Final Thought

Just as you want to protect your loved ones when you are alive, you also want to make sure they are taken care of if you are no longer able to. By getting your affairs in order now – including these 4 forms – you can rest easy and enjoy life in front of you.