The documents in your estate plan can be tailored to fit the needs of you and your family. However, certain estate planning tools should be considered by just about anyone who has assets to pass on. Here are some of the most important tools in estate planning.
Wills
A will is one of the most common and most important estate planning documents regardless of the size of your estate. The contents of your will may depend on several factors, but generally your will lets you specify how you would like your assets to be passed on to your beneficiaries after you pass away. You will also name an executor to manage your affairs after you pass away. If you have minor children, you may use your will to appoint a guardian for them if you pass away.
Trusts
There are several types of trusts you may consider when creating your estate, including revocable trusts, charity trusts, and child trusts. Generally, you, the grantor, will place certain assets in a trust and appoint a trustee to manage the affairs of the trust, according to the conditions you specify. Once it comes time to distribute the assets in the trust, the trustee will ensure that the beneficiaries you have chosen will get their share of the assets.
Healthcare and financial power of attorneys
A medical/healthcare power of attorney is used to appoint an agent to make medical decisions on your behalf if you ever become incapacitated, while a financial power of attorney may be used to appoint an agent to make financial decisions on your behalf if you ever become incapacitated. The person or people you choose to hold these powers should be people you trust to respect your wishes.
Estate planning can be complicated in Florida, even if you have a smaller estate. Consider all your options before deciding which estate planning tools are best for you and your loved ones.