Planning for the future goes beyond setting your career and lifestyle goals. It must also address how you intend to protect your wealth and assets and how you wish to distribute them according to your wishes.
This is where estate planning comes into play, a critical tool process that enables you to extend a guiding hand to ensure that your legacy is handled precisely how you planned. it even after you are gone. At its core, a successful estate plan is comprised of three main elements.
Will
The will is the foundation of your estate plan, serving as a powerful tool that declares your plans for the distribution of your assets upon your passing. This document will serve as the blueprint that outlines who will inherit your property, whether it is a family home, savings or personal heirlooms. Moreover, a will is also where you appoint a guardian for minor children to guarantee they are cared for even after you are gone.
Power of attorney
A power of attorney is a legal document that grants someone you trust authority to handle your financial affairs in your stead in a scenario where you become incapacitated due to an accident or illness. These affairs may include settling bills, handling real estate transactions or making medical decisions when you cannot do so.
Healthcare directive
A healthcare directive, also known as a living will, communicates your wishes to your healthcare providers regarding medical treatment in case you become incapacitated and unable to decide consciously. In this document, you can specify which life-sustaining treatments you want to receive or designate someone you trust to make medical decisions based on your preferences.
Estate planning can be challenging for most people as it forces you to establish plans for a future where you are no longer around. However, it can also serve as an opportunity to significantly reduce the burden on your loved ones while preserving your legacy according to your wishes.
