A simple estate plan might only include a will. Many people simply want to name a guardian to care for their children or choose specific beneficiaries for their assets. Others hope to obtain more thorough protection when they invest in estate planning.
They want to create a comprehensive estate plan that protects them in as many circumstances as possible. Obviously, a will is an important part of an estate plan. People may also want to draft letters of intent explaining their wishes and logic to guide the person administering their estate.
What other documents do people want to include to optimize their protection?
A trust
There are numerous reasons why testators might add a trust to an estate plan. They may worry about qualifying for Medicaid benefits as they age or may have reason to fear that their loved ones could misuse a large inheritance. Their children might not be financially mature enough to deal with an inheritance.
They may want to protect certain assets during their golden years or after they die. Trusts are useful for those worried about taxes, collection activity by creditors, and numerous other probate challenges.
Powers of attorney
A comprehensive estate plan generally includes documents that address support needs while the maker (called the “principal”) is still alive, not just what happens after death. Powers of attorney are documents that protect people during incapacitation.
Individuals can name someone they trust to handle their finances. In some cases, people draft durable powers of attorney that continue to have authority even if the testator becomes permanently incapacitated.
Advance health care directive
The standard advance health care directive used in Pennsylvania has two main components. People can name a medical decision-maker to manage their treatment if they are in a terminal condition or a state of permanent unconsciousness. People have the option of naming an alternate or second candidate who can fill in when the other party isn’t available or cannot fulfill the responsibilities of the role.
The document also provides opportunities for people to state their medical preferences. They can provide guidance on life support, anatomical gifts, and even autopsy preferences.
Taking the time to establish a thorough estate plan can help protect people in a variety of challenging circumstances. The addition of documents other than a will to an estate plan can be helpful for the testator and for the people in their inner circle. Seek a consultation with an experienced estate planning attorney to help tailor the correct documents you need to your specific situation.