What Should Be Included in My Estate Plan?
Your estate plan reflects your legacy, and while it will be specific to your needs and your wishes, there are some basic building blocks that should be included. One of the most important steps you can take when it comes to creating an estate plan that reflects your wishes and fosters peace of mind is consulting with an experienced Harrisburg estate planning attorney early in the process.
The Parts that Make Up the Whole
The basic parts that every estate plan should address include each of the following:
- Last will and testament
- A durable power of attorney for financial and healthcare decisions
- For some people, a Trust
Let’s take a closer look at each.
Your Will
A valid will is a legal document that outlines your intentions in relation to matters such as the distribution of your assets, the guardianship of your minor children –in the event they lose both parents before reaching adulthood– and how your estate will be handled. All of these are important considerations, and a well-written will virtually ensure that your wishes will be upheld. Without a will, Pennsylvania’s laws of intestacy will determine how your estate will be distributed, and this could be in stark contrast to what you have in mind.
Power of Attorney for Financial and Healthcare Decisions
When you create a power of attorney (POA), you designate someone to make important financial and/or medical decisions on your behalf – in the event you are unable to do so due to incapacitation or when you want that person to make such decisions for you. You can make one person both your financial and healthcare POA, or you can have two different people fill these important roles. The most important point to make is that you should choose someone whom you trust, someone who has the ability and willingness to carry out your wishes regarding these primary concerns.
Your Trust
Often, a will and trust work in tandem to provide a more comprehensive estate plan. Probate will be guided by your will, but the assets you include in a trust may bypass the probate process, which means they’ll go directly to the beneficiaries you choose – rather than being held up by the probate process, which may be time consuming and more costly. A trust is a legal entity that holds property, and when the time comes, the assets included will be distributed to your named beneficiaries in accordance with the terms you included. A trust, however, is not for everyone and Pennsylvania offers only limited benefits to the use of trusts. A trust may also be established under a will, to control the use/flow of your estate to those individuals who may need some assistance in the use of funds (i.e., minor children, people who don’t spend money wisely, etc.)
Your Will and Trust Together
Having both a Pennsylvania will and a trust in place helps to ensure that all your bases are covered. For example, any assets that aren’t directly addressed in a trust – such as anything you may have acquired closer to the time of your death – will be distributed in accordance with your will. Further, the matter of guardianship of your minor children can only be addressed in your will.
Reach Out to an Experienced Harrisburg Estate Planning Lawyer Today
The seasoned estate planning attorneys at Cunningham, Chernicoff & Warshawsky, P.C. –proudly serving Harrisburg, PA– recognize the importance of your estate plan and are well prepared and well positioned to help you establish one that reflects your wishes and affords you the peace of mind you’re looking for. For more information, please contact us online or call us at 717-260-3527 today.