Having an estate plan is essential to your family plan and your financial success. Many people think that an estate plan is something that they can wait a long time for. For instance, they might wait all the way until retirement before they start thinking about an estate plan. This is dangerous thinking and can get you into trouble. Instead, you should be getting an estate plan while you are in your young adult years and then amend it throughout the years. Here are some things that will be included in your estate plan.
1. Medical and Legal Power Of Attorneys
Powers of attorney are incredibly important after you turn 18 years old. There are two types of power of attorney that you should have. The first is the medical power of attorney. This is the document that will say what you want done medically if you are not able to communicate or make the decision for yourself. For example, assume you were in an accident that left you in a coma where you could not communicate. Should the medical team keep you on life support? Should they do a dangerous procedure? Will you allow recitation? When you appoint a medical power of attorney, the individual you name will make all of these decisions. If you don't have a power of attorney, the state will appoint someone for you. This is why it is better if you choose someone before hand that you know shares your views about health care and can honor your wishes.
Second, a legal power of attorney pertains specifically to your money and your legal matters. In this same example, no one would be able to access your finances and pay important bills, take care of your dependents and so forth. When you have legal power of attorney, this person can act in your behalf and make legal and financial decisions.
The medical and legal power of attorneys do not need to be the same person.
2. Guardianship Over Minor Children
Another vital thing that will be put in your estate plan is who you appoint to care for your minor children if you cannot. If you don't have this in writing, the state will appoint guardians. A judge doesn't know the dynamics of your family and the individual needs of your children, this is why it is infinitely better if you can appoint someone if something were to happen to you.
These are just two reasons that you should have an estate plan even when you are young. To find out more, contact someone like Linn Schisel & DeMarco Attorneys At Law.Share