Creating an estate plan involves preparing a set of legal documents that guide the distribution of your assets and specify your wishes regarding healthcare and guardianship, should you become unable to make decisions for yourself.
Given the importance of having a comprehensive estate plan, understanding which documents play a key role in protecting your interests and those of your beneficiaries is helpful.
Will
A will is a fundamental document that outlines how you want to distribute your assets after your death. It also allows you to name an executor who will manage the distribution process and can specify guardians for any minor children.
Durable power of attorney
A durable power of attorney lets you appoint someone to manage your financial affairs if you become incapacitated. This person, known as your agent, can handle tasks like paying bills, managing investments and making other financial decisions on your behalf.
Health care proxy
A healthcare proxy, sometimes called a medical power of attorney, allows you to designate someone to make medical decisions for you if you are unable to do so. This document ensures that there is respect for your healthcare preferences, even when you cannot communicate them yourself.
Living will
A living will, or an advance health care directive, specifies your wishes regarding end-of-life care. It guides your healthcare proxy’s decisions and can include instructions about life support, pain management and other critical medical choices.
Taking the time to create a detailed estate plan not only protects your interests but also helps ease the burden on your family during difficult times.
