Estate Planning: The Basics
WHAT EXACTLY IS AN ESTATE PLAN?
What Exactly Is an Estate Plan?
Who needs Estate Planning?
Estate Plan Vs Wills & Trusts
Estate Plan
Estate Plan allows you to Protect and Provide for those you care about after you have passed away, or for yourself if you become incapacitated.
Needs
Everyone needs an estate plan – not just the wealthy.
Documents
There are five essential estate planning documents.
Help
An estate planning attorney can help draw up the necessary documents.
What Exactly Is an Estate Plan?
Essential for Everyone
Will
Power of Attorney
Asset Inventory
An estate plan is a collection of documents that specify how you want your money and other assets distributed, making it easier for your loved ones to get your wealth if you pass away or access your wealth if you are incapacitated.
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An Estate Plan Allows you to:
- Identify someone you trust to make decisions for you if you become incapacitated.
- Specify who will care for your minor children if you’re unable to do so.
- Specify who will care for your specially-abled child if you’re unable to do so.
Estate planning is about control
Developing an estate plan is about taking control. You control how assets are managed and distributed, and also specify who will handle these tasks when you are unable to do so.A good estate plan will also focus on taking care of you as you age or if you become ill or incapacitated. Whether you’re wealthy or not has little to do with it.
More than just assets
Controlling your assets is only part of the picture. For parents, appointing a ‘Testamentary Guardian’ through a ‘Will’ or ‘Letter of Guardianship’ is of utmost importance so that there is a person appointed by you to act as guardian of your minor children if both parents die.
Ultimately, if you don’t make your own plan, your family may be left struggling to secure your estate and also trying to cope up with the grief of losing their beloved one. Someone will have to ask the court to decide who will act as guardian of your minor children, and let the law will determine what becomes of your assets. Bottom line: If you don’t decide, someone else will decide for you.
Remember, establishing a plan is only the beginning. Significant life events may also compel you to make changes to your plan. It’s important to regularly review your plan to ensure it continues to meet your needs and objectives. You need to consider whether your plan documents, asset titles, and nominations allow your assets to be distributed according to your wishes.
Who needs Estate Planning?
You! If you’re young and single, you may need only a few relatively simple items, like nominations, ‘Financial Power of Attorney’ & a ‘Pour over Will’.
- If you are married, you might require ‘Mirror Wills’.
- If you have children, you need a ‘Letter of Guardianship’ to name a guardian.
- If you have substantial wealth, you may need one or more trusts to help control how your assets are taxed, managed, and distributed
ESTATE PLANNING
We can help you to create an estate plan that delivers on your wishes to your loved ones. This may include:
- Your will
- Appointing Testamentary Guardians
- Trust structures such as minor, special child, testamentary, protective or family trusts and charitable trusts
- Setting up Powers of Attorney for incapacitation
- Business succession planning.
Further, we work with you to make sure your estate planning changes as your life changes. That means regularly reviewing strategies and structures and providing options and suggestions to make sure your estate plan is always relevant to your needs.
Next Steps
- Talk with a NexGen Estate Planner about the Estate Planning Documents you require.
- He or she can conduct an ‘Estate Planning Audit’ that can be the starting point to create your ‘Estate Plan’.
- They can advise you about the deficiencies in your Estate Plan and how these can be overcome.