When Should You Start Estate Planning in Your Life ?
By Kyle Robbins
Estate plans are not just for elderly folks , wealthy business tycoons , or married couples with kids .
Every adult should have an estate plan , but unfortunately , twothirds of Americans do not even have a will . If you have not done any estate planning , now is the time to act — and today , we ’ ll explain why .
What Goes Into an Estate Plan ?
Before delving into when to start estate planning , it will help to understand what documents are typically included in an estate plan . Many people think that a last will and testament is all they need , but an estate plan can encompass much more . Every person has different family dynamics , financial circumstances , and goals , so no two plans are the same . However , a comprehensive estate plan will likely include the documents listed below .
Last Will and Testament
A last will and testament communicates your wishes about distributing your assets and providing for your children , if applicable . This legal document becomes effective at your death .
Trusts
A trust is a separate entity that a trustee manages on behalf of a beneficiary . Trusts come in many forms and serve different purposes . One important purpose of a trust is to put assets into an account that can be distributed without the need to go through probate .
Durable Power of Attorney
A durable power of attorney is a legal document that appoints an agent to act on your behalf in the event that you become incapacitated .
Healthcare Documents
Also known as advance directives , healthcare documents allow you to make medical decisions for yourself that will take effect should you lose the mental or physical capacity to make those decisions later . For example , you can decide whether you want artificial nutrition or hydration if you become unable to feed yourself .
These documents govern a person ’ s assets and affairs at death and also during life . That ’ s why it ’ s so important to start estate planning now . However , a comprehensive estate plan will likely include the following documents listed .
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