What is Estate Planning?

Estate planning organizes legal documents that direct how your assets and property will be transferred to your chosen beneficiaries after death or incapacitation, while preserving as much wealth as possible. A well-designed plan prevents family conflict, avoids probate, and ensures your end-of-life wishes are honored. Additionally, an estate plan names trusted individuals to make medical or financial decisions on your behalf if you become unable to do so, typically through medical and financial powers of attorney.

Why is Estate Planning Necessary?

Anyone with assets to pass on should have a comprehensive estate plan. Without one, elderly individuals may face significant financial loss, potentially depleting their wealth and leaving little to pass on to loved ones. While the value of estate planning is clear, a majority of senior Americans lack a legal plan. If you pass away or become incapacitated without designated beneficiaries, your entire estate will enter probate. Probate is the legal process of proving a will, appraising assets, and settling debts. It can substantially reduce the value of an estate and takes years to complete.

What Estate Planning Includes

Every legal document created during estate planning has a distinct purpose, and not every person will require the same documents. Because each document must meet specific legal requirements to be valid, it is necessary to work with an attorney who specializes in estate planning and is familiar with the complexities of the process.

Below are just a couple of components of estate planning:

• Last Will and Testament
• Living Wills
• Living Trust
• Powers of Attorney
• Guardianship
• Beneficiary Designations
• Advance Healthcare Directive

The Next Steps

Once your estate plan is finalized with your attorney, keep all documents in a secure location and make sure trusted loved ones know where to find them if needed. An estate plan will need to be reviewed and updated periodically, especially after major life changes such as buying a home.

Are you ready to begin constructing your estate plan? Contact Simpson Estate and Elder Law today to schedule your free consultation.