You Can’t Take It With You.
Since you can’t take it with you, you must have a plan for how to distribute your assets upon your death.
What does a proper estate plan comprise?
A will is a legal document that you have a lawyer prepare stating your wishes for your assets after you die.
It also names the person you want to carry out the terms of your Will (called the executor). A Will simplifies matters upon your death, ensuring your assets are distributed according to your wishes.
In many jurisdictions, you do not need to have a lawyer draft your Will for it to be valid. However, I still recommend that you not only have a lawyer draft your Will but one who specializes in estate law.
They will be able to see potential issues that you may overlook. If you have minor children — you may also want to name a guardian (s) to prepare your Will.
An Enduring Power of Attorney (POA)
A power of attorney is a legal document that you sign to give a person(s) the authority to manage your money and property on your behalf because you can no longer manage your assets.
Either through mental or physical incapacitation. You can grant power of attorney to an individual, and it does not have to be a lawyer. For example, it is not uncommon for adult children to act through a power of attorney for their aging parents, who can no longer act for themselves.
There are two types of POAs.
- The first type takes effect immediately
- The second type comes into force on a specified future date or the occurrence of a specified event (e.g., when the grantor becomes mentally incapable or leaves the country for an extended period).
Then there is a regular POA vs. an enduring POA.
An example of a regular power of attorney is when you give to someone to act on your behalf while…