Estate Planning – Three Primary Components of an Estate Plan

Estate Planning - Three Primary Components of an Estate Plan

Most people pay no attention to estate planning, assuming that such plans are only for the filthy rich. However, few assets are no reason at all not to build and craft a wills and estate plan. And even if you’re still young, it doesn’t hurt to plan for the later years of your life.

Note that estate planning isn’t just about preparing for the inevitabilities of life. It also offers you a means to protect your family and assets in case of unfortunate incidents in the future. And if you want to guarantee that your properties and belongings will end up in the hands of the right people, then you must consider creating a strategic estate plan to take care of such matters when you’re no longer able to do so.

Sadly, there are far too few individuals versed in creating a comprehensive wills and estate plan. So if you’re starting to consider the merits of crafting one, read on to learn more about what you need for a comprehensive estate plan.

1. Will and Trust

A will or trust is a primary component of every estate plan. Even though you don’t have a substantial amount of assets under your name, wills and trusts ensure that your properties will be distributed the way you want them to.

Nonetheless, it’s essential to note that wording plays a critical role in wills and trusts. So, you must make sure to write them carefully to avoid confusion in the future. Be concise and straightforward in naming the beneficiary of your assets. In this way, there’s a lower chance of contentions between different dependents and beneficiaries of your plan.

2. Power of Attorney

A power of attorney (POA) refers to a written authorisation that enables one to represent another when dealing with private and legal affairs. It’s crucial to draft a POA for your estate plan for an agent you assigned to act on your behalf.

Neglecting to prepare a power of attorney may result in the court deciding what happens to your assets after you pass. Hence, it’s an important document that you must never forget to authorise your representative.

3. Letter of Intent

A letter of intent is a straightforward document handed to your representative or beneficiary that dictates how you want your accounts and properties to be handled and managed. In some cases, it can also serve as a letter of instruction for funeral details and special requests.

While it’s not necessarily a requirement for an estate plan to come with a letter of intent, it would still be a wise move to prepare one beforehand. Indeed, this document merely serves as a written account of your wishes. However, it can also serve as a legal and valid record to inform a probate judge of your intentions if your will is deemed invalid for some reason.

Conclusion

This list contains the basic requirements of a decent wills and estate. However, note that there are other things you need to consider when it comes to estate planning. And if you’re unsure about how to cover everything in your designated plan, it’s best to enlist the help of financial planners and legal solicitors that can assist you in creating one.
Looking for experienced practitioners to help sort out disputes on wills and estate in Redland Bay? Bickell and Mackenzie is a distinguished law firm based in the Redlands area, specialising in wills and estate administration. If you require a reliable professional to sort out legal matters for an estate plan, schedule a consultation with us today!

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