Proper legacy planning could be one of the greatest gifts you give your loved ones. However, you may be delaying the process of creating an estate plan because you’re thinking, “Where do I start?” Below are key questions you should be asking about your estate plan.

Have You Created Your Will?

A will is often the first step in a legacy plan, and the basis for ensuring your wishes are carried out as you want them to after your passing. In your will, you specify who you want to inherit certain assets and property after you die. This includes your physical assets, like real estate and personal possessions, and intangible assets, like bank and investment accounts.

Have You Set Up a Revocable Trust?

Like a will, a revocable living trust is a legal tool that allows you to distribute your assets after you die while maintaining control of them. But different than a will, a revocable living trust is a legal entity that owns the property you put into it while still allowing you to use and control that property when you’re alive. A revocable trust can be thought of as a legal “place” to hold your property, rather than a series of commands that come into effect only at your passing.

 

Have You Sorted Out Your Property Deeds and Titles?

If you want to use your revocable living trust effectively, make sure you have the proper title and deed documents for all your properties. This includes homes, vehicles, and real estate. The other key benefit of ironing out deeds and titles is that your family and loved ones will not need to go through probate court (the court-supervised legal process of distributing your assets) to figure out how to divide your properties. If you create a revocable living trust, you must transfer your property to the trust for it to skip probate.

 

Are You in Control of Your Medical and Financial Decisions?

An Advance Healthcare Directive (AHCD) lets you outline how decisions should be made about your medical care if you’re ever unable to make those decisions yourself. There are typically two parts to an AHCD document: a living will and a medical power of attorney. There is also something similar called a financial power of attorney (POA). With a financial power of attorney, you can give someone the legal authority to manage your finances and property for you, which could include your revocable living trust. These tasks could also include paying bills, making bank deposits, and managing your real estate property.

 

Source:

FreeWill.com

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