A basic estate plan can be fairly straightforward to create with the help of an experienced estate planning attorney.
Here are the main items you need in an estate plan. However, ask your estate planning attorney about what else you may need in your specific circumstances.
Bankrate’s recent article entitled “Estate planning checklist: 3 key steps to making a successful plan” says there are three things you need in every good estate plan: a last will, a power of attorney and an advance healthcare directive – and each serves a different purpose. However, if you can lower your spending, you won’t need to dip into your retirement funds as much. Let’s look at these:
A Last Will. This is the cornerstone of your estate plan. A last will instructs the way in which your assets should be distributed.
Everyone needs a last will, even if it’s a very basic one. If you do nothing else in planning your estate, at least create a last will, so you don’t die intestate and leave the decisions to the courts.
A Power of Attorney (POA). This document permits you to give a person the ability to take care of your affairs while you’re still alive. A financial power of attorney can help, if you’re incapacitated and unable to manage your finances or pay your bills. A medical power of attorney can also help a loved one take care of healthcare decisions on your behalf.
With a financial power of attorney, you can give as much or as little power over your financial affairs as you want. Note that when establishing this document, you should have a conversation with your power of attorney agent, so if called upon, he or she will have a good understanding of what they can and can’t do financially for you. A healthcare power of attorney also allows a person to make healthcare decisions, if you’re unable to do so.
An Advance Healthcare Directive. This document instructs medical staff how you want them to handle your health-related decisions, if you’re unable to choose or communicate. It includes resuscitation, sustaining your quality of life, pain management and end-of-life care.
Reference: Bankrate (July 23, 2021) “Estate planning checklist: 3 key steps to making a successful plan”