An estate plan generally includes a will. Wills are testamentary instruments that explain an individual’s preferences regarding the support of their dependents and the allocation of their property after they die. People who draft wills are already ahead of the curve, as many adults never create even wills.
However, wills are far from the only estate planning documents that people require. Those hoping to more effectively protect their loved ones and themselves generally want to expand their estate plans to include a number of different documents. The three documents briefly outlined below are among the most beneficial additions to a basic will.
1. Trust documents
There are numerous scenarios in which funding a trust is a smart estate planning decision. Some people may worry about qualifying for Medicaid later in life. Trusts can help them achieve that goal. Trusts can protect assets from collection efforts while people live on a fixed income during retirement or during the probate process. They can also prevent beneficiaries from wasting what they inherit. Trusts are useful for people in a variety of different challenging situations.
2. Powers of attorney
People don’t just need to plan for what happens when they die. They also need to consider what might happen if they have an incapacitating medical emergency. A stroke or a car crash could leave an individual unconscious or unable to communicate for weeks. Powers of attorney help ensure that there are responsible adults capable of managing a person’s affairs when they cannot act on their own behalf.
3. Advance medical directives
In an emergency scenario where a person cannot explain their preferences, their closest family members may feel intense pressure. They have to decide how long to permit life support interventions or whether the individual wants to make an anatomical gift, such as organ donation. Advance medical directives help ensure that health care professionals and family members with the authority to make medical decisions know an individual’s preferences. People can explain their preferences in advance so that the people caring for them can make the right choices about their medical treatment.
Adding additional documents to an estate plan can help enhance an individual’s protection and strengthen the legacy they leave after they die. Testators creating their documents or reviewing their wills after major changes may want to consider adding additional documents for more robust protection.