3 Legal Tools for Wealth Preservation

Estate planning is one of best ways to preserve your wealth and legacy. With the proper legal documents you can save your family time and money by previously delegating who will receive your assets after your death. It may be an uncomfortable topic to bring up with your family, but it is an important and responsible way to coordinate your financial and legal affairs. Here are five tools that can ensure your wealth will be managed properly.Wills and TrustsA will that is a legally binding document that gives detailed instructions about who will get different assets that you have left behind. Property agreements can also be included in the will that determine how real estate assets will be divided. You should review and update your will periodically, especially after any significant life events such as having more children or buying a house. Another component of the will is that you will need to designate someone to execute it. They will be required to carry out the will and distribute the assets according to your wishes.Trusts allow someone else to take care of your wealth until your designated beneficiaries are deemed responsible enough to receive their benefits. You should also make sure that your other assets, ranging from your bank accounts, life insurance and pension plans, also have a designated beneficiary on file.Power of AttorneyAnyone that has power of attorney means that you both have signed an agreement that they will make decisions on your behalf if you are unable to speak or think coherently. They will be legally responsible for you, so you should choose someone that you completely trust.Health Care DirectivesHealth care directives allow another person to make decisions about how your healthcare will be managed. This would only be applicable if you were in an accident and need life support and other extensive medical treatment. Depending on the state you reside in, you may be able to get health care directive forms from healthcare providers, county offices or your local hospital.Estate planning will allow your loved ones to avoid a lengthy and possibly expensive probate process with the government. They will also be able to spend less time worrying about filling out paperwork. Estate planning is a way for families to stay together during a time of tragedy and can allow you to be peacefully reassured that your wishes will be carried out.