By Hannah Mower
When it comes to planning for the future, many people believe that writing a will is enough to protect their assets and provide for their loved ones. However, the truth is that a will is just one piece of the estate planning puzzle.
A will is a legal document that outlines how a person’s assets will be distributed after their death. It typically appoints an executor to carry out the wishes of the deceased and can also name guardians for minor children.
While a will is an important document, it does have its limitations. Firstly, a will only goes into effect after a person passes away. This means that it cannot address any potential incapacity or medical decisions that may need to be made while the individual is still alive. In the event of incapacity, a will is not enough to ensure that a person’s wishes are carried out.
Additionally, a will only covers assets that are held in the individual’s name. This means that any assets that are jointly owned or that have designated beneficiaries, such as life insurance policies or retirement accounts, will pass directly to the designated recipients and will not be included in the distribution outlined in the will. Moreover, a will is subject to the probate process, which can be costly and time-consuming. During probate, the court will validate the will, gather and distribute assets, and pay any outstanding debts or taxes. This process can take several months to several years, and the fees and expenses associated with it can significantly reduce the value of the estate.
To truly have comprehensive estate planning, a will should be accompanied by other important documents such as a power of attorney, a healthcare directive, and possibly a trust.
A power of attorney allows a designated individual to make financial decisions on behalf of the person granting the power, in the event of incapacity. A healthcare directive outlines a person’s wishes for medical treatment and appoints a healthcare proxy to make decisions on their behalf if they are unable to do so. A trust is a legal entity that holds assets and can be used to distribute them according to specific instructions, outside of the probate process.
Having these additional documents in place can provide more comprehensive protection for a person’s assets and their loved ones. It can also help avoid the potential for family conflicts and ensure that a person’s wishes are carried out in the event of incapacity or death. In addition to having the right documents in place, estate planning also involves regularly reviewing and updating these documents as life changes occur. This can include major life events such as marriage, divorce, birth of a child, or significant changes in financial circumstances.
In conclusion, while a will is an important document, it is not enough to provide complete protection and preparation for the future. Estate planning involves a combination of legal documents and strategies to ensure that a person’s wishes are carried out in all eventualities. Consulting with a qualified estate planning attorney can help individuals create a comprehensive plan that addresses all of their needs and provides peace of mind for themselves and their loved ones.
