When most people think of estate planning, they imagine a will, but an estate plan encompasses much more than one legal document. Estate planning plans for the future, not only for your death. You want to think about other potential issues that might come up as you get older. Estate planning protects your assets if you become incapacitated, such as with dementia or disabled through a car accident. For some people, estate planning with an estate planning lawyer in Alexandria, LA, such as from Theus Law Offices, includes asset protections against lawsuits. Here are four legal devices that can be part of your estate planning.
Trusts – Generational Estate Planning
A trust is an estate planning tool that directs the distribution of assets long after you have died. Trusts are often established for minor children or special needs adults, but there are many other reasons to use a trust as part of your estate plan. Trusts control the management of assets, not only the distribution of dividends. If you have an heir who hasn’t managed money well, a trust can be the tool that protects the assets while still providing for the person.
Wills -The Traditional Legal Document
A will is your wishes for how your assets are divided among your heirs. Your will dictates who your heirs are and provides for the distribution of your estate. If you have a trust, you may not need to put much into your will. However, any asset that isn’t part of your trust will need to be in a will. You’ll also get to name an executor, an administrator who oversees your final wishes and handles all the details of your estate.
Living Will and Health Directives
A living will designates a health care agent for a time when and if you become medically disabled or incapacitated. You can make your directive as specific as you want. For example, you can give instructions on what your family should do if you need life support.
Financial Power of Attorney
A financial POA allows you to name a person to manage your financial estate in case you can’t. You can give this person broad power or be very specific as to when they can manage your money. A POA ends on your death, so don’t think you don’t need the other documents in your portfolio.
Discuss your situation with an estate planning attorney who can look at your needs now and in the future to determine a course of action. Protect your assets for yourself and your heirs.