Some people think that all they need is a “simple will,” but they do not realize that a will won’t cover everything. Usually, you need a combination of documents to really make sure you are covered and protected should something happen to you. There are 5 “must have” estate planning documents that every adult should have in their estate plan.
An Indianapolis news station’s recent article, “The 5 legal documents every adult should have” lists those five key estate planning documents involved and talks about the importance of having them in place.
- General Durable Power of Attorney. This document states who you want to make decisions if you’re unable to do so for yourself. Without it, your family may have to petition the courts to become your legal guardian, which can be time consuming and expensive. A power of attorney allows the person whom you select, to pay your mortgage or rent and your bills.
- Health Care Power of Attorney. This document plans for the situation, if you are unable to make your own health care decisions. You name someone you trust, like family members or friends, to do this on your behalf.
- Will. This says that when you pass away, here’s what I want to happen. A will states who will get your assets after your death. If you don’t have a valid will in place, the state laws of intestacy will govern what will happen to your estate—which may not be what you want.
- Living Will. This is the document in which you state your instructions for end-of-life care, such as life support. This document is used to make certain that your family and physicians know what you want your end-of-life care to be. A living will is much different than a will.
- Revocable Living Trust. This document can be important, if you’re a parent with young children and would like your assets passed down properly to your children if you die. Typically, if children are under 18 or 21, they’re legally minors and can’t receive assets. A trust can help coordinate their receiving your property.
An experienced estate planning attorney can help you with the creation of these documents while creating an overall plan so that your wishes are followed, your legacy is protected and your family is secure.
Reference: WTHR 13 (April 17, 2019) “The 5 legal documents every adult should have”