Estate planning is essential for people of all ages and financial statuses. Even if you are young and in good health, having an estate plan in place can spare you and your family a major issue should the unthinkable happen.
According to Kiplinger, there are numerous estate planning decisions you must make now before injury or illness occurs. Here are a few important points to consider.
Name an executor
The executor of your will carries out many essential processes after you are gone. They must locate your assets, pay creditors, submit reports to the court, and pay your heirs. Certain characteristics are crucial in executors. For instance, the person must exhibit responsibility in their own life. They must also exhibit financial responsibility since they will manage your finances going forward.
Make health care decisions
A living will explains your wishes for end-of-life medical care. It can list which treatments you prefer and which to avoid, including life-preserving treatments like CPR. Living wills are legally binding, so medical staff and family members must abide by them. Many people also name a medical power of attorney, which is a personal representative who can communicate your wishes to others directly. You can choose a spouse, adult child, sibling, parent, or friend.
Talk with your family and professional staff
Once you finalize your estate plan, you should communicate your wishes to your loved ones. You should also make sure they have access to important documents, including bank account information, usernames and passwords for online accounts, power of attorney forms, mortgage documents, property titles, and any other information required to manage your estate after you are gone.
You must also make sure your family can reach any professionals who provide service to you, such as doctors, attorneys, and financial advisors. The more prepared you are now, the less stress your family will experience.