You don’t need to have multiple homes in various states to have an estate. Any property you own, including your home, car, money in the bank, and available cash, are all considered your estate. Estate planning ensures there are legal documents available that identify what should be done with your assets when you’re gone or unable to speak for yourself. Here’s a closer look at the process and why everyone should have a plan in place.

A Basic Guide to Estate Planning

Why should I have an estate plan?

Although you might intend for your assets to be passed along to your spouse, children, or other individuals when you’re gone, intentions are not legally binding. An estate plan consists of documents that protect your personal property from being taken by the wrong individuals.

Typically, it consists of a will, power of attorney, medical power of attorney, a living will, and one or more trusts. These guidelines specifically define what’s to be done with your assets and who is in charge of protecting your wishes and making sure they’re carried out properly. 

When should I make one?

It’s never too early to begin estate planning. You can get started today by calculating all of your financial assets and personal properties and documenting all liabilities. When you’ve finished, contact a professional estate attorney to document these assets.

You’ll also assign beneficiaries and an executor to carry out your wishes. The lawyer will also advise you on the appropriate life insurance to ensure surviving family members are protected from estate taxes and remaining debts.

What is a letter of intent?

A letter of intent is a document that outlines an understanding between two or more parties. It’s usually presented during the negotiation stage to provide safeguards while terms are being agreed upon. 

In estate planning, a letter of intent serves as a guide for the management of your estate. It’s not legally binding, but some courts have used this information when a question arises about the individual’s wishes. 

What is power of attorney?

Power of attorney is a legal document that allows someone to act on your behalf. This person will be authorized to make personal decisions when you’re incapacitated. You can have multiple powers of attorney, such as a person for medical decisions and another to handle financial ones, but it’s essential to make it known what they are and are not allowed to do.

When estate planning and determining the worth of your properties, turn to Concept Appraisal Services. Connie Jo Esbenson is a certified residential appraiser with 17 years of experience helping people in Littleton, CO, and the Denver Metro area. She uses the most current technology and methodologies as well as her knowledge and experience of the area to evaluate market conditions and produce accurate property appraisals. Call her today at (303) 506-6254 for a free quote and visit her website to learn more about her residential appraisal services.