No matter your age, amount of wealth, or social status, everyone should consider how they want their assets distributed upon their death, and who will make decisions will be made if they are unable to do so. These are big decisions – and why estate planning is so important.
For the sake of yourself — and, more importantly, your loved ones – creating your estate plan now can prevent a lot of emotional pain and suffering in the future. Let’s briefly go over 5 of the basics of estate planning.
5 Basics of Estate Planning
- Drafting your will. A will states how you want your assets distributed after you die. It requires you to appoint an executor of your estate. You detail who’s to receive which assets and whether any conditions need to be met before beneficiaries receive their inheritance, such as minors reaching a certain age first. A common thought is that all assets and investments automatically go to the spouse if no will exists. However, without a will, Missouri state law will dictate what happens to the estate – which may not reflect your personal wishes.
- Designating beneficiaries. A simple alternative to executing a will in court is to set up beneficiary designations for your specific assets. This can be accomplished with bank accounts, life insurance, investment accounts, personal property, and real estate in some states. It removes those assets from the estate and reduces the cost of settling the estate in court.
- A healthcare power of attorney. Selecting someone to make health-care decisions for you is critical if you cannot do so. This document lets you empower another person as an agent to make those decisions. This also lets you detail healthcare and medical treatments you may not want under different circumstances. Your healthcare agent will be required to follow those wishes.
- Specify your wishes in a living will. Like a healthcare power of attorney, a living will provide directions for life-saving treatments you may or may not want under different circumstances. Your healthcare agent will be tasked with making certain that your wishes are followed.
- Do not resuscitate (DNR) order.Note that a “do not resuscitate,” or DNR, order is a separate document of a living will. A DNR describes under what conditions you would not want life-saving treatments. Know that healthcare institutions frequently require that people fill out their in-house forms regarding health-care directives.
Ready to get started on your estate plan? Contact the team at Ozarks Legacy Law today to schedule your free consultation call!
