There is more to estate planning than just drafting a will.
Fed Week’s article entitled “Estate Planning: It’s Not Just about Making a Will” explains some of the essential components of a comprehensive estate plan.
Here are a number of components to include:
- Powers of attorney. A power of attorney allows a person you name to act on your behalf regarding financial matters.
- Health care proxy. This authorizes another person to make medical decisions for you, if you are unable to do so yourself.
- Living will. This document states your wishes on life-sustaining efforts.
- HIPAA Waiver. This document allows healthcare professionals to provide information on a patient’s health to third parties, such as family members.
- Letter of Last Instruction. This personal document is an organized way for you to give your family important information about your finances and perhaps your reasons for your choices in your will or trust. This letter isn’t a will or a substitute for one.
- Trust Planning. This is a way to avoid assets going through probate. The assets in trust can provide funds for your heirs under the rules you set up.
Reference: Fed Week (September 28, 2021) “Estate Planning: It’s Not Just About Making a Will”