These Important Documents Are Crucial During the Estate Planning Process

 Posted on August 11, 2016 in Taxation Law

Summertime is the time when everyone is getting married. And you may think that once the wedding is over, you're done planning and it's time to relax, at least until it's time to start planning for a family. Before you take that next step, you need to consider your future, even if it's just the two of you. Estate planning is important now so that you're planned for later.

Las Will and Testament

Most people only think about a will when they think of estate planning. This document is important because you choose the person who will oversee your estate along with choosing who inherits your assets. You'll also appoint a guardian for any future children.

Living Will

While your last will and testament plan for when you pass away, a living will outlines important decisions you need to make while you're still alive. For example, if you fall ill and are unresponsive, you can't make decisions regarding certain medical treatment. Your living will makes those decisions ahead of time.

Healthcare Proxy

Similar to a living will, a healthcare proxy addresses medical treatment in the event you've become incapacitated. However, instead of outlining how you want to be treated, a healthcare proxy designates someone to make those decisions for you. Generally, you'd choose someone you trust completely, such as your spouse.

Living Trust

If you're interested in helping your surviving family avoid probate, you may want to consider creating a living trust This allows you to transfer assets to the trust as a separate entity. A living trust in place can help save your loved ones a lot of time and money.

For more information on wills and estate planning, contact us.