One of the main advantages of making an estate plan is that testators can instruct how they wish their assets to be handled after they pass away. The testator can name an executor of the estate who is responsible for distributing assets to beneficiaries and settling the estate.
This is what many people think an estate plan is for, but it’s not the only thing. Estate planning is multifaceted. Here are a few more things you may want to know about as you plan your estate:
Assigning a power of attorney
Many people develop medical problems or suffer injuries that make them nonresponsive. If a testator becomes incapacitated and can no longer make decisions, they may have a power of attorney to do so on their behalf. The power of attorney could be in charge of financial and/or medical decisions with the testator’s wishes in mind.
A power of attorney is a representative that the testator names in their estate plan. The power of attorney can be anyone of legal age. Many people name a spouse, sibling or parent as a power of attorney.
Assigning a guardian for your children
Parents often think about their children’s future. Parents may consider naming a guardian in their estate plan for the benefit of their children. A guardian is a representative who takes on the role of a child’s parents if the child’s parents die. The child guardian may have full legal rights as the parents and would be responsible for raising the children, typically, until the children are 18 years of age.
Many people don’t realize just how much an estate plan can do. Testators may need to consider learning about all of their legal options.