Whether it’s managing your retirement or caring for an aging loved-one, the financial challenges that come later in life can feel overwhelming. But with proper estate planning, they don’t have to be. By making sure your wishes are known and taken care of ahead of time, you’ll have peace of mind knowing that your wishes and the needs of your family are met.
Communicate with your family.
Estate planning can be a difficult thing to discuss. Talking about your death and the dividing of assets can make your family members uncomfortable. Honest communication about your wishes is an important step in helping them prepare for the unexpected.
Draft a will and name an executor.
Your will dictates how your assets are distributed and can also designate legal guardians for dependents. If you don’t make this decision, the court will make it for you. You may wish to work with an attorney to ensure that you’ve covered all the important topics and nothing will be left to chance. You will also need to name an executor who will be responsible for overseeing the estate until all assets are distributed.
Solidify power of attorney and medical power of attorney.
Power of attorney enables another person to handle your finances and investments should you be unable. Whereas, medical power of attorney gives another person the power to speak on your behalf and make all medical decisions for you. However, both documents are void once you’re gone, making proper estate planning highly important.