What is a Comprehensive Estate Plan?
Did you know that an estate plan isn’t just one document? Nope! Comprehensive estate plans include many documents.
What documents your estate plan actually include will vary slightly depending on your individual needs, however, all comprehensive estate plans will include at least these three things:
What will happen if you can no longer take care of yourself?
What will happen after you pass away?
How will you reduce the burden on your family?
There is only one you
And there is no such thing as a one-size-fits-all estate plan! Your comprehensive estate plan will be very different from your parent’s plan, your sibling’s plan, and your friend's plan. Each person has different goals and different lifestyles that need to be taken into account.
Number 1:
What will happen if you can no longer take care of yourself?
In the event you are no longer able to take care of yourself, your loved ones will need instructions on what to do. There are a variety of different documents that will empower your caregivers to help you.
Power of Attorney
A Power of Attorney (POA) is one type of document. There are different types of Power of Attorneys that you will need to consider. For example, a Power of Attorney for finances will allow someone else to act for you in making financial decisions on your behalf. On the other hand, a Power of Attorney for healthcare will allow someone else to make decisions for you related to your healthcare.
Trusts
Another type of document that can also help manage your financial decision making is called a trust. Trusts are an extremely flexible legal instrument that allows you to set very specific instructions for what to do with your property when you pass away or when you want (or need) to have someone else manage your property.
HIPPA Authorizations
HIPPA Authorizations are used when you are still able to make healthcare decisions for yourself but you want someone else to have access to your records. These are useful if you are seeking medical advice or if you need support to review your records.
Short-Term or Standby Guardianship
Short-Term Guardianship paperwork is used when you have minor children or if you are the guardian of a disabled adult. These documents will ensure that those you love are taken care of in the event you can no longer take care of yourself.
Number 2:
What will happen after you pass away?
Who will take ownership of your home? What will happen to your retirement account? Who is listed on your life insurance policy? If you are no longer here, where will your children live?
The instructions your loved ones need for when you pass away will be different than if you are no longer able to take care of yourself. In the instance of your passing, your family will need a will or trust in place if you want to have a say in what happens to your children and your property. These documents include instructions for who should receive your home, how your family should divide your personal property, what to do with your bank accounts and who you want to take on the care of your children.
Number 3:
How will you reduce the burden on your family?
The goal of a comprehensive estate plan is to reduce the burden on your loved ones. This includes the emotional, financial, and logistical burden that comes along when these traumatic life events happen.
When you have a comprehensive estate plan in place, you are providing comfort to your loved ones in knowing what comes next. It is especially important to make sure that every person included in your estate plan understands what the document means for them. When you are looking to hire a lawyer to draft your estate plan, make sure to find someone who will partner with both you and your loved ones so everyone knows and understands your plan.
We hope you found this information helpful! If you have any questions regarding this topic, please reach out to us. We are here to help!
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