About Seniors Estate Planning
Estate planning is essential to protect your assets and to make sure that they are distributed according to your wishes upon your death or incapacitation. Setting up an estate plan requires the creation of certain legal documents, such as a will and power of attorney. To set up an estate plan properly, you should seek advice from experts in the field.
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Documents Needed
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Important documents you need to create include a designation of power of attorney (both medical and financial), and wills, both a living will and one that goes into effect upon your death. The medical power of attorney and living will indicate your wishes regarding medical decisions in the event you become incapacitated. The financial power of attorney designates an individual to make decisions regarding your financial affairs upon your incapacitation. The will provides direction as to how you wish your affairs to be handled after you die. You will also need to name an executor to make sure the provisions of your will are carried out properly.
Take Stock of Your Assets
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Take the time to list your assets and assign a value to those that do not have a specified dollar amount, such as jewelry or collector automobiles. This will provide you with a finite dollar figure to assign to your assets, which can help you determine how and to whom you want to have them disbursed. Common assets include homes, insurance policies, bank accounts, stock portfolios and retirement accounts.
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Educate Yourself
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Learn the basics of estate planning. While you do not need to be an expert in the field, it helps to have a general understanding of what is involved in the process so you will know how to prepare. Financial planners often conduct seminars specifically geared to seniors who want information about estate planning, and they are often provided free of charge.
Is a Trust Right for You
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A trust is a legal entity that determines specific financial benefits that are to be issued to certain beneficiaries. They often include conditions that must be met before the funds can be disbursed, such as attaining a certain age. They are usually set up for the benefit of people who are unable to manage their own affairs, such as a child or the disabled. Trusts can also be set up for a specific purpose, such as to provide for a child's education. If any of these conditions apply to you, a trust may be useful.
Seek Expert Advice
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Even with the most careful planning, it is still possible to overlook certain details or to make mistakes in your estate plan. Tax laws can be complicated, and it can be difficult to discuss these sensitive matters with other family members. It is advisable to consult with an expert in the area of estate planning, such as an attorney that specializes in the field or a certified financial planner.
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