Estate planning is crucial for seniors to safeguard their assets and ensure their wishes are respected. Here are five vital estate planning documents you should have:
1. Last will and testament. Your will dictates how your assets and property are distributed after your death. Local laws determine asset distribution without a will, potentially conflicting with what you want.
2. Living will (advance health care directive). Your living will outlines your medical treatment preferences if you become incapacitated. It covers decisions on life-sustaining treatments, organ donation and medical interventions, guiding healthcare providers and loved ones.
3. Financial power of attorney. This document appoints a trusted individual to manage your financial affairs if you cannot do so. It ensures bills are paid, investments are managed and financial obligations are met in your absence.
4. Beneficiary designations. These designate individuals who will receive specific assets, such as retirement accounts or life insurance proceeds, upon your death. Keeping beneficiary designations current ensures your assets pass directly to your chosen beneficiaries, bypassing the probate process.
5. Revocable living trust. You transfer ownership of assets to the trust while alive, avoiding probate upon your death. Trust terms specify asset distribution, providing privacy and efficiency in estate settlement.
Seek guidance from legal and financial professionals to help you create a comprehensive estate plan tailored to your needs.
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