Overview
Did you know that if you do not have an Estate Plan the government will have one for you? Being proactive and creating or updating your estate plan is critical to ensure that your wishes are carried out and to help your loved ones through an already very difficult time. An estate plan also allows you to create your legacy today and live into it each and every day.
Estate Plans
An Estate Plan is not just for wealthy people! If you own anything, you have an Estate. It includes a Will or Trust document that states where you would like to direct your assets when you no longer need them and who should take over responsibilities for loved ones (children). However, people often overlook the other, sometimes even more important, documents in an Estate Plan that help you if you are incapacitated.
Documents For Incapacity
The Healthcare Power of Attorney document allows you to state who can make medical decisions on your behalf if you cannot make those decisions for yourself. A Financial Power of Attorney lets you choose who can help you pay your bills and maintain your finances if you are unable to do so yourself. These are very important documents you want to ensure are in place in case there is ever a calamity.
Will Versus A Trust
A Will and a Trust are both documents that allow you to direct your assets and belongings to the people or causes you care about and provide instructions for the care of the people you are responsible for. An attorney drafts a Trust and it allows your estate to avoid probate. Probate is when the courts get involved to direct your assets, and it is a public process. A Will can be drafted by an attorney, written by the individual, or even handwritten (not recommended) and provides instructions for the probate process. The Will and the probate process will take longer to distribute assets, but it is often less expensive to draft than a Trust. For people who have some level of complexity in their estate (children, second marriage, business interest, charitable beneficiaries, wealth, etc.), a Trust is often recommended.
Creating Your Legacy
When you are creating or updating your estate plan, it is a perfect time to think of all the people and causes that you care about or that inspire you. Leaving 5%, 10%, 50%, or even 1% of your assets to causes you care about can create a lasting legacy from assets you no longer need. Including Maricopa Community Colleges in your Estate Plan will impact generations through education.
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