Estate Plan and Power of Attorney - Making a Will

Estate Plan

Believe it or not, every human being wishes to ensure greater financial safety and financial security for their loved ones. If you stumbled across this article, you must be searching for ways to secure all the hard work that you put into building assets for you and your loved ones all your life. We know it very well too that you think about the consequences of your sudden demise. You must have given a thought to think of ways to secure your assets in case something happens to you. That is exactly where an estate plan comes into the picture. If you think you don’t have any state, think again! Your estate comprises of everything that you own. Your estate includes your car, home, furniture, insurance plans, savings accounts, and other personal possessions. No matter how small or large your possessions are, everyone owns an estate. The sad truth is; you cannot take it along with you in case something happens to you.

A life spent thinking of “when,“ ” what,“ and if is become the very complex especially when you don’t have a backup plan in your hands. Without an estate plan, you probably will not be able to control how the things that hold the most importance in your life are given to your special ones all the people you care about the most. To affirm that your wishes are fulfilled, you should short for making a will or an estate plan that provides instructions that states who you want to hand over your possessions and estate as a gift of love.

What is an estate plan?

The process of declaring a plan in advance and naming a person who you want to hand over the things that mean the most to you is called an estate plan. But in literal terms, an estate plan refers to the act of passing down personal assets or Investments from one generation to the next. Through an estate plan, you can easily decide how much of your estate, including your property, personal achievements, investments, saving accounts, cars, etc., you want to pass on to. Through an estate plan, you can also mention the names of the people that main hold a right over your assets after your demise. This is all done using the help of an agent or an attorney-in-fact. The person to draught a legal document that gives the Attorney a legal authority to make legal decisions for your property, state, and other personal assets.

How is General Power of Attorney helpful in an estate plan?

A general power of attorney is a legal document that is drafted by the principal (the property holder) with the help of an agent or an attorney-in-fact. The general power of attorney gives the agent or Tony an impact on the power to act for the principal. With the help of the agent, the principal can carry out all the legal decisions related to the property, finances, or even medical care. This also includes drafting and state plan to secure the principles properties and personal assets. The general power of attorney is frequently utilized in case of the principal’s sickness or inability to put signatures on the legal document. A general power of attorney should be considered by everyone as they grow older to plan for or long term security and care of their personal properties. The agent for the Attorney is authorized to take care of all the issues about the principal’s bank accounts, legal documents, signature, filing taxes, and many more. You as a principal can also declare a limited power of attorney. However, the unlimited power of attorney gives the agent a limited pass on your behalf. Unlike the general power of attorney, a limited power of attorney is only given a certain set of powers to exercise for asset duration.

How is it different from making a will?

To a lot of people creating an estate plan and making a will are the same. However, an estate plan and making a will are two different worlds. While both the processes give your loved ones the right it or instructions about how your assets should be handled after your demise, an estate plan is an in-depth outline of your wishes that includes everything, write from your health, property, finances to even wishes that may be applicable even while you are living.

Explaining broadly, a will includes relatively simpler details that the last testament should include. The details mentioned in a will can include beneficiaries who will be responsible for your kids, your properties, or your wishes related to other assets. A will is used only when you die. You are required to sign an executor who will be responsible to meet all the instructions mentioned in the will after you die.

Estate Planning, on the other hand, is a broader concept that encapsulates the will, family trust, and testament along. In most of the cases, the will along with the document stating the family trust are some of the documents that are included in the creation of an estate plan.  It is a more intensive process that includes a variety of documents like a living will, appointed financial general power of attorney, designating the beneficiaries, etc.

Estate planning is essential for ensuring privacy by putting the plan on paper for your family and loved ones. Within the estate plan, you will be able to provide your family with a more detailed understanding of what you would like them to do after your demise. And a state plan will especially be beneficial in case you own a business or you wish to donate your Assets and properties to charity. With an estate plan, you can define specific requests related to all the Assets of your health, property, and personal achievements. Your children are not mature enough to understand your business or responsibilities as a principal, you can easily mention in your estate plan when you want your kids to inherit all that is theirs. With the help of an estate plan, you can also establish a family trust that will give your children access to your Assets and properties when they are old and ready to take charge.

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