What Are the Two Key Documents Used to Prepare an Estate Plan?

When it comes time to begin putting plans in place regarding your assets and finances, there are an overwhelming number of options. However, a Fort Mill estate planning attorney can simplify the process and help you determine which plan is the right fit for you and your family. You may be wondering, “What are the two key documents used to prepare an estate plan?”

If you are currently in the process of estate planning and have questions or are simply looking for legal advice, our knowledgeable team at Mack & Mack Attorneys can provide for those needs. We have an in-depth understanding of the estate planning process and can help you navigate each step.

What Is an Estate Plan?

An estate plan is a legal plan regarding what will be done with everything you own once you are deceased. This includes everything from your vehicle to your home to your finances. Additionally, plans regarding your healthcare, funeral, and even burial expenses can be included in an estate plan. Anyone can create an estate plan regardless of the size or amount of their estate.

One great benefit of an estate plan is that it grants peace of mind to you and your loved ones before and after your death. Rather than having your family members tasked with making decisions regarding your belongings, you can clearly outline your wishes ahead of time. You can also make decisions outlining how you want certain medical decisions to be made and by whom, should you become unable to make your wishes known regarding such things.

Key Documents

There are many key documents that can be beneficial to include in an estate plan. Some of these are a will, a trust, a power of attorney, beneficiary designations, instructions regarding healthcare, and more. However, there are two main documents that are typically relevant to every person and family: a will and a trust.

A will is a legal document that is fairly broad in what it can do. Within this document, a person may outline what is to be done with their assets, finances, and any other form of property that they own at the time of their death. This can include plans for guardianship of children, other dependents, and even pets. A will can be intricately specific or relatively general depending on your needs and those of your family.

A trust is a legal document that specifically gives directions concerning your assets, financial and material. While there are various forms and types of trusts, they generally allow a person to transfer specific funds into it. Some forms of trusts may allow family members to access the assets within the trust before the person who created it has passed.

A Lawyer’s Role

Estate plans involve a lot of legal documents and paperwork. It is essential for these documents to be properly drafted and signed, which is one vital area in which an estate planning attorney can be of help. Additionally, an attorney can advise you and your family according to which available components of an estate plan may be fitting for your situation.

In the case that you have a financial advisor or another financial professional who is familiar with your accounts, an estate planning attorney can work alongside them to ensure your assets are properly taken care of and that nothing is overlooked.

FAQs

Q: What Are the Main Components of Estate Planning?

A: While each person’s estate plan will vary according to their specific needs and those of their family, there are some common components that are likely to be found in a typical estate plan. A will is one example, which is a document explaining how a person would like for their belongings and finances to be handled after their passing. Healthcare directives, trusts, powers of attorney, guardianship designations, and beneficiary designations are other examples.

Q: What Are Estate Plan Documents?

A: There are various kinds of estate plan documents. A will is the general option, which is a legal document outlining how a person wants their belongings and finances handled after they pass. A healthcare or HIPPA release document is another important document that allows family members to make medical decisions on your behalf should you become incapacitated. Other relevant documents include a living will, powers of attorney, and a mental health directive.

Q: What Are Some Common Estate Planning Mistakes?

A: There are a variety of mistakes an individual may make during estate planning because the process can be complex. One mistake often made is failing to update a will that was created years ago. Relationships and other factors change over time, meaning that as people get older, their will may need revision. Another mistake is failing to understand every component of a person’s estate plan. An easy way to mend this mistake is to consult a knowledgeable estate planning lawyer.

Q: Is an Estate Plan Necessary?

A: While you may think an estate plan is only for individuals with a lot of assets or a large family, anyone who owns any amount of assets can utilize an estate plan. A well-crafted plan can save your family members much time and energy in sorting out your finances and assets after you pass. Additionally, estate planning can set your own mind at ease as you can make decisions ahead of time concerning your mental and physical health.

Mack & Mack Attorneys, Your Estate Planning Attorneys

It can be difficult to know when the right time is to begin estate planning and where to start. Estate plans come with many options to consider. You do not have to navigate this process alone. An experienced estate planning attorney can help you assess your situation and determine which plan is appropriate for you.

At Mack & Mack Attorneys, our lawyers have helped many individuals and families with estate planning. We understand the complexities of such planning and are ready to guide and support you in every possible way. Instead of feeling confused and overwhelmed, let us assist you in confidently walking through this process. Contact us today to learn more about the details of estate planning and how we can be of help.