Estate planning basics

| Jun 15, 2021 | Estate Planning

Estate planning is important for every adult living in Florida. Even younger people who don’t have much to their name should have a plan in place for disability or death. High-net-worth individuals are even more strongly encouraged to make an estate plan. There are some essential documents that make up a basic estate plan, including wills, power of attorney and life insurance.

Wills are incredibly important

A last will and testament is a cornerstone of estate planning. In a will, people are able to name their executor, designate who their property will go to and name a guardian for any minor children they have. Even people who are young and don’t own much yet should have a will in place. It’s important to revise a will as circumstances change, such as after a divorce or the birth of a new child.

Planning for disability

A durable power of attorney is a document naming someone to act on your behalf in the event that you become disabled. Without a power of attorney in place, the court may decide who acts for you. Durable power of attorney can be revoked when the person affected by it is recovered and can act for themselves, or when they die.

Other steps

It’s important to keep beneficiary information updated on documents like insurance policies. Regardless of what a will says, these assets will pass to whoever was last named. Tools like trusts can also be incredibly valuable when planning an estate. It’s a good idea to get professional advice when making these plans.

Consider consulting with an experienced attorney when formulating a will, a trust or another part of your estate plan. Other professionals like accountants and insurance agents are also important resources.