Managing your affairs in life—and after your death—requires the help of a thorough estate plan. Typically prepared by a qualified attorney, this set of documents outlines specific wishes you have regarding your assets and personal care. If you are unable to make decisions about your estate due to death or incapacitation, these items will help ensure that your preferences are honored. If you’re exploring this important legal step, here are four estate planning documents to be familiar with. 

4 Essential Estate Planning Documents & What They Do

1. Will

A will details how your assets are to be divided among surviving family members and other individuals—collectively known as beneficiaries. Some assets that can be described include homes, businesses, retirement accounts, and stock portfolios.

If you have minor children, a will can assign a guardian to care for them if you pass away. This document may also include a “Letter of Intent” to explain how you wish your death to be handled and why you want it that way.

2. Living Trust

A living or revocable trust is like a will in that it assigns beneficiaries to specific assets. However, these documents tend to be more involved and offer additional flexibility in estate planning. For example, you can define how account funds are distributed to a child—such as periodically throughout life or a lump-sum payment upon completion of a college education.

Unlike a will, assets named in a trust also do not have to be processed through probate court, allowing these decisions to remain out of the public record.

3. Durable Power of Attorney

A durable power of attorney allows you to assign an individual—such as a lawyer or family member—to make decisions about finances and business matters if you have died or become incapacitated.

A person who has power of attorney can manage bank accounts, pay outstanding bills, sell real estate, address tax matters, and ensure you continue receiving government benefits.

4. Health Care Proxy

A health care proxy includes a few items that govern your medical care. An advance directive, for instance, details how your medical care should be handled if you are unable to make sound decisions independently.

Commonly, an advance directive will determine whether you’d want to be on life support in a terminal health situation. This proxy may also name a healthcare power of attorney—an individual assigned to make medical decisions on your behalf—if you’re unable to do so.

While every adult should have an estate plan, preparing one can be complex. However, with the help of Stuart R. Norman Jr., the process is made much simpler and stress-free. Specializing in estate law, this New London County attorney will prepare all essential documents to ensure every affair is handled appropriately according to your wishes. Visit this lawyer online to learn more about these estate planning services or call the Jewett City, CT office at (860) 376-0069 to schedule an informative consultation.