The prospect of creating an estate plan can be a bit uncomfortable and even intimidating for most people. After all, the process requires you to consider your own death or incapacity as well as to understand what legal steps you need to take to plan for either. It helps to have a general idea of what tools and strategies go into a typical “starter” estate plan. With that in mind, the Long Island estate planning attorneys at Eghrari Law Firm explain what should be included in your estate plan.
5 Things that Are Included in the Average Estate Plan
By its very nature, the creation of an estate plan is a highly personal and very individualized process. Each person who creates a plan will have unique needs and goals that must be considered when creating an estate plan which is one of the many reasons why working with an experienced estate planning attorney is critical to the creation of a successful estate plan. Nevertheless, it helps to familiarize yourself with some common additions to the average estate plan, such as:
- Last Will and Testament. A Last Will and Testament usually creates the foundation on which a larger estate plan is eventually built. Executing a Will prevents you from leaving behind an intestate estate and ensures that your assets are distributed according to your wishes upon your death. You will also appoint the Executor of your estate and nominate a Guardian for your minor children (if applicable) in your Will.
- Living trust. Although a Will can distribute your entire estate, there are limitations to how you can direct the distribution of estate assets using a Will. For example, if you have minor children, they cannot inherit directly from your Will. Likewise, if you want to stagger the distributions to beneficiaries, a Will is not the best choice. For more options regarding how your assets are distributed, or to be able to decide who will manage the inheritance of a minor, you will need to create a living trust.
- Living Will. A Living Will is one of two important advance directives that should be included in your estate plan. Your Living Will allows you to make important end-of-life healthcare decisions now in case you cannot make them later. By making your wishes clear about things such as the desire to accept or reject life-sustaining medical care, you ensure that your wishes will be followed down the road.
- Healthcare Power of Attorney. A healthcare Power of Attorney is the second important advance directive that should be in every estate plan. This legal document lets you choose someone to be your Agent in the event of your incapacity. Your healthcare Agent will have the legal authority to make healthcare decisions for you if you cannot make them yourself. Together, these two advance directives not only provide the peace of mind that comes with knowing your wishes will be honored but also decreases the likelihood of conflict among loved ones about your healthcare.
- Probate avoidance. Probate is the legal process that ultimately distributes your assets after paying debts following your death. Formal probate can take a long time and diminish the value of your estate assets. By incorporating probate avoidance strategies in your estate plan you can help ensure that assets intended to help loved ones after you are gone are passed down as quickly as possible and that assets are not lost to costs associated with probating your estate.
Are You Ready to Get Started on Your Estate Plan?
For more information, please join us for an upcoming FREE seminar. If you are ready to get started on your New York estate plan, contact the Long Island estate planning attorneys at Eghrari Law Firm by calling us at 631-265-0599 to schedule your appointment.
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