Regardless of your net worth, an estate planning attorney can help you make sure your affairs are truly in order and that your wishes will be honored in case of your death.
It's not just rich people who need to worry about hiring an estate planning attorney. Fees for attaining these legal documents are nothing,
compared to the amount of taxes and disappointment that your loved ones can face in the wake of your death, if you haven't prepared the proper documents ahead of time. Some of the main documents involved include a living will, a last will, a power of attorney, and a trust. If you have dependents, you may also want to secure legal custody forms and a pet protection agreement.
The Importance of a Last Will
Basically, a last will lists beneficiaries, property distribution, guardianship, and your final wishes regarding your own interment.
People who die without legally recognized last wills cause the distribution of their property to be determined by the state, which usually defers to the spouse and children, if they are living, and otherwise to your closest living relative; if no legal beneficiary can be found, the state would inherit your property. With a last will, however, you can specify your heirs, your children's guardian, and the executor of your estate.
Often, people wonder what happens with their outstanding debts, if they die before the debts are satisfied. If you owe more than you own, your family cannot inherit your debt—unless it is part of joint accounts.
The Importance of a Living Will
Having a living will allows you to communicate your wishes regarding life support measures and other extreme and ongoing treatments, in case you are unable to make those decisions for yourself. Not only does this give you the power to make the choice, yourself, but it frees your family from having to make such a hard decision at an already difficult time. Along with a living will, determining a health care power of attorney can allow you to appoint a trusted friend or family member to make medical decisions on your behalf, if you're unable to make them yourself.
Of course, as long as you are able to communicate your wishes regarding medical treatment, neither your health care power of attorney nor your living will becomes a factor.
The Importance of a Power of Attorney
This document specifies the person that you trust to make decisions on your behalf. Whether you become mentally incapacitated or are otherwise unable to make certain choices for yourself, a durable power of attorney prohibits a court-appointed stranger from making decisions regarding your affairs and finances. Like a living will and last will, an estate planning attorney can help you document your wishes regarding a power of attorney and make sure that the document in question meets the state's requirements. Without legal advice, your wishes may not be recognized by the state.
These types of documents may bring up possible situations that make you feel uncomfortable. However, by considering the possibilities now and hiring an estate planning attorney, you can be sure that in the case that unfortunate circumstances do occur, your wishes will be honored.
