![]() ![]() It doesn’t replace a will or trust because it’s not a legally binding document. Letter of intentĪ letter of intent is, well, exactly what it sounds like: a letter left to the executor of your will that provides an overview of your wishes for your assets and your family after your death, as well as any details you want to relay for your funeral or burial. It’s important to set them up because they can help appease arguments within your family over how to care for you during a stressful situation. These documents together are called your advance health care directive. For instance, if you were to fall into a coma, a living will would detail whether or not you wish to be kept on life support.Ī living will is usually paired with a health care power of attorney, sometimes called a health care proxy. A living willĪ living will is a set of instructions that outlines what kinds of medical treatment you would want - or do not want - if you were ever incapacitated. It’s also a good idea to have backup agents named in your powers of attorney in case your first choice is unable or unwilling to act. For example, you might want your spouse to be your agent under a health care power of attorney, while a money-savvy sibling acts as your agent under a financial power of attorney. You can appoint a single person to handle everything, or you can designate a different person to handle different situations. Durable powers of attorneyĪ power of attorney allows you to appoint an individual to act on your behalf when you’re unable to state your wishes due to illness or injury. Although the labeling might be different, the goal is the same: to name who should get the money in your account after your death. One heads up if you’re dealing with non-retirement financial accounts: Their version of a beneficiary form will probably be called a transfer on death (TOD) or payable on death (POD) form. ![]() In many cases, you can split your assets between more than one, or name a secondary beneficiary in the event the first person you named passes away before you do. If your situation changes through divorce, remarriage or the death of a beneficiary, update your beneficiaries as soon as possible to ensure that your wishes are followed. It’s possible to pass along assets outside of a will if you’ve designated beneficiaries to your various financial accounts - including bank, brokerage and retirement accounts, as well as life insurance policies.īecause beneficiary forms trump what you put in a will, it’s really important to make sure you keep your designations up to date. A trust can also take effect before you pass away, which means you can serve as your own trustee while you’re alive and then appoint someone else to take over after your death. A trust, meanwhile, can avoid probate and is privately handled. A trust accomplishes the same thing, along with appointing a trustee to carry out your wishes.īut there is a major difference between the two: A will has to go through probate, which means it must go through court proceedings in order to be executed, and it becomes public record. It should also include who you appoint as guardian of your minor children, other dependents or pets as well as any specific instructions for their care. A last will and testament is a document that spells out how you want to divvy up your property and assets when you die. A will or trustĪ will or trust is an essential part of an estate plan. What's included in an estate plan?īut what exactly is in an estate plan, anyway? Here's an estate planning checklist with five key things to include.Įstate plans are about more than how much money you have - they help ensure that your wishes are carried out. That’s because estate plans are about more than how much money you have - they help ensure that your wishes for yourself, your family and your assets are carried out in the event of your illness or death. What you’re probably not thinking is that this is something you’d ever have to deal with yourself.īut the reality is anyone over the age of 18 could benefit from a little estate planning 101. When you hear the words “estate planning,” you probably imagine immense wealth and old money - as in tycoons and socialites who spend their days sipping mint juleps on the polo grounds. Educational Resources About Family & Work.Educational Resources About Everyday Money.Educational Resources About Financial Planning.Disability Insurance Calculator Money Parachute icon.Disability Insurance For Doctors and Dentists.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |