You have decided to create an estate plan. Congratulations! A considerable number of Americans believe that they don’t need to waste time on estate planning, which is a myth. If you own anything, you need to consult an estate planning lawyer Moorestown to determine the documents you may need. It all largely depends on the assets you own, your goals, and your age. Below, we have explained some common terms related to the process.
Durable Power of Attorney (POA)
A Durable Power of Attorney (POA) is an estate planning document that gives the authority to an individual to make decisions if you are unable to do so. You can have POAs for finance and healthcare. The word “durable” is worth noting here. A Durable Power of Attorney (POA) only comes into effect if you become incapacitated.
A Healthcare Directive, also called an Advanced Healthcare Directive or a Living Will, is a document that states your wishes with regard to future treatments and end-of-life care. If you become mentally unstable or are incapacitated, your family may have a hard time deciding about your care. If you have a Healthcare Directive, it will express your wishes, which will be honored by your physicians and family members.
Wills and Intestate
A Will is an estate planning document that communicates how you wish your estate to be distributed after your death. Wills only come to effect after the concerned person’s death and must go through the probate process. Intestate is the situation when a person dies without a will. In these circumstances, NJ’s Intestacy laws will determine the heirs. A will allows you to retain control of your estate even after your death.
Irrevocable and Revocable Trusts
Trusts can be used to transfer assets for the welfare of chosen beneficiaries. Trusts don’t have to go through the probate process and can be useful for people with considerable assets. There are two kinds of Trusts – Irrevocable and Revocable. A Revocable Trust can be altered without much fuss. On the contrary, Irrevocable Trusts cannot be modified/dissolved without seeking approval from the trust beneficiaries.
Don’t wait for the future to have an estate plan. With basic estate planning documents, you can protect your loved ones and ensure that your wishes are respected after your death or at a time when you aren’t well. Talk to an attorney to know more about the various estate planning tools and how you can get started.