When it comes to planning for the future, particularly for the inevitable end of life, many people wonder if having a will is sufficient. While a will is the foundation of many estate plans, it may not be the only tool you should use in your situation. Should your plan involve more than just a will?
What does a will do?
Creating a will allows you to outline who will receive your possessions after you pass away. This document can also specify guardians for minor children and even provide directions for certain personal items. Many people use a will as the foundation of their estate plan.
However, a will comes with limitations. A will allows you limited say over your possessions. Wills must go through probate before your loved ones can receive their inheritance, which can be costly and time-consuming. This estate planning tool also cannot help in managing your affairs if you are unable to do so yourself due to illness or accidents.
Should you consider other documents?
Creating a more comprehensive estate plan allows you greater control over your assets, both during life and after death. Depending on your estate planning goals, you may want to explore many different tools. Some tools to consider include:
- Trusts: Trusts can be used for various purposes, such as avoiding probate, limiting the impact of taxes or managing assets for beneficiaries over time. Unlike a will, a trust can operate both during your life and after your death. A trust also allows you greater control over how and when your loved ones receive their inheritance, allowing you to offer additional guidance.
- Power of attorney: This document allows you to appoint someone to manage your financial affairs if you cannot make those decisions yourself. There are also medical powers of attorney that allow someone to make healthcare decisions on your behalf.
- Living will (also called an advance healthcare directive): This document specifies your wishes for the medical care you will receive. It allows you to make your wishes known long before a health issue arises.
When considering which options are right for you, you may want to seek legal guidance. Consulting with a qualified estate planning attorney can help you develop a plan that meets your specific needs and provides the full protection and peace of mind you deserve.
While a will is an essential piece of any estate plan, it might not be sufficient on its own. A comprehensive estate plan considers all facets of your life and death, ensuring that your wishes are respected and your loved ones are cared for in the best possible way.