What Are the Five Components of Estate Planning?

What are the five components of estate planning? Knowing the answer to this question can help make the estate planning process easier for both you and your family. While the process can seem complex from the outside, working with a York estate planning attorney can help you create a plan addressing each component of an estate efficiently and effectively. Having an estate plan in place is critical, no matter your age or the size of your estate.

If you are considering beginning the estate planning process in South Carolina, our team at Mack & Mack Attorneys is prepared to help.

Understanding Estate Planning in South Carolina

Estate planning can sound like a formidable term, but it simply refers to the process of organizing your estate for the future. While estate planning deals with various details that arise at the end of your life, there are other terms and requests you can implement while you’re still here.

One of the most important reasons you should have an estate plan in place is to ensure that your loved ones and assets are cared for properly when you are no longer here. When you make decisions regarding your estate ahead of time, you allow your loved ones to focus on grieving instead of worrying about legal and administrative duties. An estate plan can address important details such as funeral requests as well as outline guardianship for minors left behind.

The Five Main Aspects of an Estate Plan

Every estate plan generally addresses five components. While there are additional decisions that can be made if your circumstances require, the following are the main components of a South Carolina estate plan:

1. A WillMost people start their estate plan by creating a will with their lawyer. While there is no required outline for what must be included in a will, it generally details the beneficiaries you want and any specific requests you have regarding your loved ones and property. It’s important that you create a will earlier rather than later. Parents, for example, often create wills upon the birth of their children to ensure they are protected in case something should happen to them.
2. Power of AttorneyA power of attorney (POA) is a legal document that gives someone the authority to make decisions on your behalf. The person who you appoint to make these decisions is commonly referred to as the agent, while you are referred to as the principal. Your agent should be someone you trust, as they will make decisions for you while you are still living. The two most common powers of attorney are financial POAs and healthcare POAs.
3. Predetermined Healthcare DecisionsEven if you create a healthcare power of attorney, it is still helpful to write out your wishes concerning medical decisions that may be made for you. If you are incapacitated and unable to make decisions for yourself, having your personal wishes legally documented allows your future agent to make decisions for you the way you want. You can outline the types of healthcare you’d wish to receive or not receive in a living will.
4. Beneficiary DesignationsIf you have not already designated your beneficiaries in a will, it’s crucial that you list each person to whom you’d like your assets to go when you pass. Even if you have one person that you’d like everything to go to, this should still be legally documented within your plan. If you have certain assets that you don’t want to go through probate, or that you believe need supervision, you can create trusts for them while you’re still alive.

   If you do not have a valid estate plan that designates beneficiaries in place when you pass, the court will follow state laws to distribute your property, even if you had specific wishes.

5. Final Arrangements and RequestsWhile no one likes to think about what might happen toward the end of life, it’s incredibly important that you legally document all of your final wishes to ensure your requests can be followed properly. In your estate plan, you should detail any decisions you’ve made regarding your funeral, burial, and disposition of your body. You can also allocate funds ahead of time to cover the expenses.

FAQs

Q: What Are the Most Common Components of an Estate Plan?

A: While every state plan is different and depends on the needs of the creator, there are common components you will see in most of them. The most common aspects of an estate plan include a will or trust, a power of attorney, and beneficiary designations. If you’re unsure what details to include in your estate plan, talk to a knowledgeable estate planning lawyer from our firm for guidance.

Q: Do You Need an Estate Planning Lawyer in South Carolina?

A: While it is not legally required, anyone building an estate plan in South Carolina should highly consider working with a knowledgeable estate planning lawyer. Together, you can work together to build an estate plan that addresses each of your needs effectively. Working with a lawyer can also help you to ensure that your estate plan is crafted legally and that it will be honored in court.

Q: What Are the Foundational Documents of an Estate Plan in South Carolina?

A: While every estate plan is unique to its creator, there are a few documents that are commonly seen in estate plans across South Carolina. These documents include wills or trusts, power of attorney, beneficiary designations, and more. A will is often considered the “foundational document” of an estate plan because it can address a variety of issues in one document.

Q: How Much Does an Estate Planning Lawyer in South Carolina Cost?

A: The total cost of a South Carolina estate planning lawyer will depend on a variety of factors. These include the pricing system an attorney uses, the amount of experience they have, their location, how long you work with them, and more. To get a better understanding of how much it costs to work with an estate planning lawyer, don’t hesitate to ask about their prices before moving forward.

Mack & Mack Attorneys: Your South Carolina Estate Planning Lawyers

Our experienced estate planning attorneys have spent years helping South Carolina residents navigate the estate planning process. We understand that planning for the future can be overwhelming, which is why we’re here to provide you with the support you need to create a plan that helps you feel comfortable and confident. Contact Mack & Mack Attorneys to schedule a consultation and begin creating your estate plan.