Your estate plan should include a will at the minimum. In your will, you can leave money, property, and other assets to loved ones after you die.
You’re not limited to leaving assets to people, though. If you like, you can give your assets to a business or charity that’s important to you.
If you have minor children, your will is the place to name their guardian should you pass away before they turn 18. Before you name someone as guardian, though, talk with them to ensure they’re up for the responsibility.
If you leave assets to minor children, you’ll need to name someone to manage those assets until your children turn 18.
Lastly, you’ll name a personal representative to carry out your wishes after you pass away.
To finalize your will, you’ll have to sign it in front of two witnesses (beneficiaries of your will can’t serve as witnesses).
At first glance, a revocable living trust seems similar to a will. You can use both documents to control who inherits your assets after you die.
But, unlike with a will, you can’t name a guardian for your children in a trust. So if you have children, you’ll still need to make a will.
Another difference between these documents is that a trust allows your family to bypass probate, while a will does not. If you’d like to spare your loved ones from the time and expense of probate, it’s smart to make a trust.
When you make your trust, you’ll have to name a trustee. This person handles asset distribution according to your beneficiary designations. They’ll have other duties, too, including:
The role of trustee comes with a lot of responsibility, so think carefully before you choose to assign that role. Pick someone you trust who knows how to handle money and deadlines responsibly.
Before making a trust, you must understand its terms. Don’t confuse revocable living trusts with irrevocable trusts.
A revocable trust allows you to change the terms anytime before you die. You retain control over your assets while alive.
If you opt for an irrevocable trust, you can’t change its terms once you’ve set it up. The trust also owns any assets you put in it.
An irrevocable trust sounds restrictive, but it does have its uses. Some people set up an irrevocable trust to reduce taxes or protect assets from debt collectors. If you’re unsure which trust to choose, an estate planning attorney from Legacy Design Strategies can help.
A power of attorney (POA) legal document gives another person the right to make certain choices for you if you become incapacitated. You can give someone full decision-making power or limit their control to specific areas.
A financial POA allows someone to make decisions about your money. This person can file taxes, pay bills, sell property, and manage your retirement plans.
With a medical POA, you can name a person to make healthcare-related choices for you. They can talk to your doctors and choose treatments on your behalf.
You may also want to create an advance care directive. This document spells out your wishes for medical treatment if you can’t speak for yourself. For instance, you could specify whether you want doctors to revive you or continue life support.
It’s a good idea to have an advance care directive even if you’ve named someone to serve as medical power of attorney. This document alleviates the burden of making tough decisions for your loved ones.
You’ll need to meet two requirements to make a power of attorney. First, you must be of sound mind (able to make good decisions). Second, you must sign the document before a notary public.
Get Started Today
Contact Legacy Design Strategies for Your Estate Planning Needs
If you’re ready to make your estate plan, Legacy Design Strategies is here to help. We specialize in estate planning and have years of experience serving clients in Iowa, North Dakota, and Nebraska. If you’d like to make a will or need help choosing a trust, just give us a call.
9859 South 168th Avenue,
Omaha, NE 68136
7 Third Street SE, Suite 202,
Minot, ND 58701
320 North Oak Street, PO Box 295,
Iowa Falls, IA 50126
