What Is An Estate Plan And Why Do You Need One Before ...

We are terribly busy in the modern-day world. We have roles to work, regularly kids to look after, and when we will we like to chill and enjoy ourselves. It?s rarely that we have the time or the inclination to make plans for the future.

But tomorrow is rarely guaranteed. As much as we not like to mull it over we may be gone in the future.

Where would that leave our families?

It?s truly an agonizing thing to contemplate. That's the reason why most of us put it off? Sometimes until it's too late.

Who would pay the debts if your bank account was locked up in probate?

Would your youngsters be well placed to continue their college and future dreams?

Are you even tolerably insured?

Even if you do not have a large amount of assets your financial affairs might be tied up for months or years. Your family may struggle to take care of business.

Unless?

You have made plans for that possibility.

Generally someone does not get motivated to make an estate plan till they see somebody else suffer. Maybe a friend dies and they see what happens to the family as that person?s estate has to go through probate. Or perhaps a person who the deceased never intended gets the majority of the estate. This is extremely common.

Perhaps they have seen estate taxes get the bulk of the estate because the monies were not protected with some easy trust or will declaration. This too is very common.

Maybe you've seen it with our own elders. They die without a will and you are stuck cleaning up the mess. Perhaps the beneficiaries who received assets weren't the ones they really intended to get them.

And if they died intestate (without a will), the estate had to go thru probate court and a judge made all the choices as to who got what, even though they did not deserve or truly qualify. This frequently happens if a prior partner was on an old will or still had claim to somebody's assets.

Having a clearly stated will would have avoided all of these Problems. Once there's a will of record the courts can't make decisions. The will becomes the final authority on who gets what and who are the legitimate successors of any and all assets. It becomes quite clear in the court?s eyes.

So what are the tools you need to have in your estate plan.

A Will

Having a Will and Last Testament is probably the simplest and most typical legal tool that everyone has at their disposal. You can even make your own will but I do not commend it. Unless you are really conversant with your country's estate laws you could be doing more damage than good.

A Power of attorney

A Durable Power of Attorney gives a specific person control of your finances should you become incapacitated or unable to make calls. Be certain to have somebody you trust assigned as your legal representative. Remember, should you die, the Power of Attorney becomes invalid. Your representative will have no authority so make sure you have a will to cover what happens after you die. You can have that designate become your estate executor if you want on your death.

Health Care Surrogacy or Health Care Proxy

If you are in the hospice and have a terminal illness, you want to point out what should happen if you go on life support. Without a Medical Care Surrogacy even simple medical information may be refused your family unless you have appointed who has the ability to get that information. This is awfully frustrating to loved ones and family if you become awfully sick. You owe it to them to have this critical legal vehicle prepared.

Trusts

For some monetary circumstances having a trust in place can protect useful assets and confirm they pass to your selected heirs. A trust can avoid these assets from going to into probate court where a judge will make these choices for you.

Well I hope that has motivated you to act. Having a solid estate plan makes good business sense and is vital if you would like to defend your loved ones from frustrating money Problems after you die.

Rick Hart is an online business consultant. He provides tools for estate planning counsels in Tampa Bay that help with wills, powers of attorney, trusts and estate planning.

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