Thursday, December 08, 2011

What Should a Good Estate Plan Include?

There is more to estate planning than just drafting a will. A good estate plan should be designed to avoid probate, save on estate taxes, protect assets if you need to move into a nursing home, and appoint someone to act for you if you become disabled. To achieve these goals, almost every estate needs to include a will and a power of attorney at the very least. The will directs where your assets will go after you die and allows to appoint a guardian for your children. A power of attorney appoints someone to act on your behalf if you become incapacitated. Another common estate planning component is a trust, which is useful for avoiding probate, among other things. Medical directives allow you to appoint someone to make medical decisions on your behalf. All these components need to work together to form a complete plan

 

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