Estate
Planning is something every adult American can benefit from, if done right. You
don’t need to own real estate worth millions of dollars or greying hair to
qualify. In the real world, the earlier you start, the better. You can always
modify or expand your estate plan, as your financial status, family structure,
and other personal preferences change. Death is unpredictable and you don’t
want your family to suffer in the aftermath of your demise. Proper estate
planning keeps your assets in the right hands and guarantees transmission to
the rightful heirs.
Estate
Planning Attorney in Denver, CO, claims that comprehensive estate planning is a small
price to protect the future of your kith and kin. The four pillars of estate
planning are:
1.    Â
Living Trust
More
and more people in the U.S. are adding a living trust to their estate plan,
owing to its major advantages. The topmost reason for establishing a revocable
living trust is the exemption of probate. When a person dies, the probate court
will take over his/her assets. Probate is a time consuming process and costs a
good deal of money. Inheritors may have to wait months to years, and bear heavy
expenses in order to retrieve your legacy. A living trust speeds up the process
by transferring direct power to a successor and avoiding any interference from
court.
The
successor of your living trust is eligible to manage all assets under the trust,
in case you become ill/incapacitated or die. He/she may duly distribute the
trust assets among nominated beneficiaries as per your instructions. The added
benefit is that your asset information remains private and no third party can
cause intrusions. Â
2.    Â
Living Will and Healthcare Power of Attorney
If
a time comes when you fall into a coma or vegetative state, your living will
can assure that things are handled the way you would prefer. Immediate family
tends to get extremely troubled and tentative on such occasions. Conflicts
arise when part of the family is ready to let go, but the remaining are still
hopeful for your recovery. Through a living will, you can help your loved ones
make the right decision; you can opt for an artificial life support system to
keep you alive or choose to pull the plug on an unproductive life. An accident
or old age may lead to a terminal illness or some kind of disability. The
healthcare power of attorney lets you designate a person who shall be
responsible to take medical decisions on your behalf.
3.    Â
Financial Power of Attorney
Assigning
the financial power of attorney to a person allows him/her to make financial
decisions in your place; you may limit this authority by establishing terms and
conditions. You can grant the power while you are entirely healthy and
conscious or restrict it to unusual situations. The successor for financial
power of attorney may come into effect after an occurrence that leaves you
mentally or physically incompetent to fulfill duties.
4.    Â
Last Will and Testament
The
last will and testament has high emotional value and is equally significant in
the eyes of law. It is the ultimatum to all your assets and can be used to
convey a last message to the special people in your life. It determines what
will happen to your property, business, and underage children while you are no
longer available to look after them. Lack of a will leads to massive
intervention by court and your family shall face a hard time recovering your
possessions.Â
Article comments