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What is estate planning, and how does it work?

On Behalf of | Dec 28, 2021 | Estate Planning |

Residents of Washington, DC can protect themselves and their loved ones through estate planning. Knowing more about it can help you when you choose to do it.

What is estate planning?

Estate planning is a process that involves creating legal documents that assert where your property and assets go upon your death. It lets you name beneficiaries who will receive your money and property. It also allows you to decide how your important matters are handled if you become incapacitated. You can also name legal guardians for your minor children and pets.

What documents can be included in estate planning?

Certain documents are often included in estate planning. While you can decide which ones you want to create, having as many of these as possible can better protect your assets and loved ones.

A will is one of the most important documents you can have as part of your estate planning. It gives you the opportunity to state your last wishes for how your assets and property should be distributed after your death and lets you name guardians for your young children and pets.

A financial power of attorney gives you the chance to name someone who will handle your financial matters if you can no longer take care of them yourself. A healthcare power of attorney can make decisions on your healthcare if you’re incapacitated and can’t express those wishes verbally.

A durable power of attorney allows you to name a trusted person to be legally responsible for handling matters that aren’t related to your health.

There are many different types of trusts you can create. A trust can hold your assets and property and prevent them from going through probate upon your death. It can also save taxes on those things and ensure that whatever you want to leave to your beneficiaries is given to them once you’re gone.

Estate planning is one of the most important things you can do in life. It protects your assets and your family.