Seven Steps for Creating an Estate Plan

Creating an estate plan is an important step to make sure that your affairs are in order. Unfortunately, many people put off this responsibility because it sounds unpleasant, or they think they have more time. The truth is that we don’t know how much time we have. Getting your end of life plans taken care of provides security for your family and allows you to make the best decisions for your own estate.

Estate planning is not only about deciding which beneficiary should receive your property once you pass. There are other considerations that are important. For instance, what happens if you fall ill and can no longer legally make decisions for your health or finances? Without a proper plan in place, these situations can be exceptionally difficult for family and may mean that decisions will be made in a way you would not condone.

The estate-planning process is not difficult and your decisions can be updated as life situations change. Here, we’ll discuss the seven essential steps to complete an adequate estate plan.

1. Find a Qualified Elder Law Attorney

An elder law attorney has experience in all facets of estate planning. This is an important consideration because different lawyers specialize in their own areas of law. A real estate lawyer would not be a good choice for a criminal defense attorney, for instance.

A qualified elder law attorney can look at your unique family and financial dynamic to help you make the best choices for your estate. They can also explain the Massachusetts state and federal tax structure as it applies to your case and make recommendations for the best way to secure your property during your life and after your death.

2. Make a Will

A will is an important document. Without it, your estate will be divided based on the laws of the state. Your will designates an executor who is responsible for paying debts and distributing your assets to the beneficiaries. The will also designates guardianship in cases where there are underage children. If assets are left to underage children, the will may stipulate a trust which can be set up so minor children receive the funds at a set age.

3. Establish a Trust

A living trust is a vehicle you can use to avoid the probate process. For instance, you might put your home or multiple properties into a trust, with you as one of the trustees. This way, the property passes directly to the remaining trustees upon your death. At the same time, you maintain control over your properties during your lifetime. You may use both a will and a trust, which is advisable in some cases. 

4. Designate a Durable Power of Attorney

A durable power of attorney is the person you appoint to make decisions for your finances if you become incapacitated or can no longer manage these functions during your life. This is an important decision because the person you appoint will have legal access to all of your financial holdings. They would be charged with paying your bills and maintaining the financial obligations of your estate if you were unable to do so.

5. Create a Health Care Directive

Your health care directive specifies what kinds of decisions you want made regarding your medical care if you are not able to answer on your own. This document is often called a living will. This is where you would specify whether or not you want to stop medical treatment under set circumstances.

6. Assign a Health Care Power of Attorney

A health care power of attorney is assigned to make decisions for your medical care on your behalf. If you were seriously ill for a prolonged period of time, the health care power of attorney would discuss treatment options and make decisions with your providers for the remainder of your life. 

7. Pre-Plan Funeral Arrangements

Pre-planning funeral arrangements is advisable for a number of reasons. First, it allows you to budget this final expense, which is often far more costly than people realize. Second, it allows you to choose the details of your service that are important for you and your family. Third, you’ll be able to pre-plan the burial or final resting place and may choose to make family arrangements as a whole.

The final reason is a personal one. Planning a funeral in advance is a kindness to your family. It allows them the chance to grieve your passing without worrying over plans or costs.

Estate planning is not difficult but you do need to make sure these documents are handled competently to protect your family and make certain your end of life care is adequate for your needs. Contact the Law Offices of Adam J. Tobin today to start your estate plan.