Avoid Being like Anna Nicole Smith: Estate Planning Everyone Needs

Many people make the mistake of thinking that estate planning is for the elderly. However drafting a will and other legal documents allows you the chance to let others know about your medical and financial wishes. This is particularly important if you have an unexpected accident or have specific views on certain types of medical care.

Each year thousands of people die without any type of estate planning. In the case of Anna Nicole Smith, the lack of a clear will and other estate planning documents cased a lengthy and costly court battle. Even if you are not a celebrity, dying without a will can leave your family without a clear idea of what your wishes are.

It is important to meet with an attorney to discuss estate planning in the context of your specific needs. Unlike thirty years ago, you will probably need more than a basic will. Many people have not only a will, but a living will, power of attorney, and trusts to protect their loved ones and their estate.

A Will

A will is the document that leaves instructions on how your estate should be distributed in the event of your death. This is the most basic estate planning document. If you have children, a will can specify who will be their new guardian and protect your assets for their future upkeep. If you do not have a will, probate court will decide how to distribute your estate.

It is important not only to have a will but also to update it frequently. A good rule of thumb is to review your will after the birth of a child or marriage. These are often events that will alter your will. A good lawyer should be able to help you make any necessary changes to your will and other estate planning documents.

Living Will

A living will is used to make others aware of your wishes concerning your medical health. A living will specifies what treatments you are willing to undergo to prolong your life. This is the estate planning document where you can specify if you would like to be kept on life support or use a respirator if such devices became necessary permanently.

Planning ahead by drafting a living will can be a gift to your relatives. A living will is particularly important to have in case of long term illness or an unexpected accident. Not only does this ensure that you will have the care that you want, but also prevents any feuds in case of a difference of opinion between family members.

General and Medical Power of Attorney

The power of attorney allows a person that you choose to make decisions about your life if you are unable to. This includes financial and medical decisions, depending on what type of rights you give the person who will be acting as your agent.

Think carefully before choosing to give power of attorney to someone. Most people choose a family member as their power of attorney. It is important to talk with the person you have chosen before you name him or her, some people may decline if they feel they would be unable to handle the addition stress.

A Trust

A trust varies in usefulness depending on the state you live in. In some states, a having a trust is the only way to avoid having your estate go through probate after your death. By having a trust, you can avoid probate and any unnecessary or excessive taxes. A trust can also control how and when your heirs receive any money or property from the estate.

It is important to discuss a trust with a knowledgeable attorney who will be able to tell you whether or not this document is appropriate for your set of circumstances. A good attorney will also be able to tell you the various options you have while drafting a trust.