Have you thought about who will take care of your family when you are not there? If you are the sole breadwinner, how will they make ends meet after you die? Estate planning ensures your family is well taken care of and your assets are distributed responsibly amongst them.
What is Estate Planning?
Estate planning allows you to determine how certain aspects of your life can be handled if you are incapable of handling them yourself (due to disability or death). It involves a number of documents pertaining to the following:
- Your property, as well as the management and distribution of assets. This includes the estate tax and transfer tax issues that skip a generation.
- Your health, particularly who will make decisions pertaining to your health care if you are unable to as well as how much authority you want to give them. You can also mention organ donations.
- The individual(s) who will care of your minor or disabled adult children in case you die or are unable to provide continued care for them.
Estate planning will prevent the probate court from intervening and ensure your wishes are carried out.
Essentials of Estate Planning
Some of the essentials that should be in your estate plan include the following:
A written will ensures you have a say in the dispensation of your assets after you are gone. Make sure you draft it with the help of an attorney and make sure it is updated every five (5) years.
Durable Power of Attorney
This critical document designates an individual who will be responsible for conducting your business on your behalf. This includes financial transactions, bestowing gifts, etc. If said individual is unavailable, the successor will take over the role, so make sure you appoint an individual.
Regardless of the size of your estate, you should make sure your finances are organized. This includes your military information, birth dates, tax records, banking records, insurance, investments, and real estate information. Copies of essential documents should be kept in a secure location – only to be procured on your demise or if you are disabled.
A local Elgin, IL attorney from Jackson Abdalla Law Group can help you come up with an estate plan you can trust. Secure the financial future of your loved ones by getting in touch with us today. We can help you set up a trust as well.