Estate planning can seem like a daunting task. With so many things to consider, knowing precisely what you should include in your plan can be challenging. Our estate planning attorney in Holbrook NY at Gulotta & Gulotta is here to help you understand the integral components of your estate plan and provide you with options that benefit your circumstances. Continue reading to discover the five components of estate planning.
What Are The 5 Components Of Estate Planning?
When you picture estate planning, you likely think it is drafting a will. However, several components must be included to ensure that your assets are transferred appropriately upon incapacitation or death. Here are the five elements of estate planning:
- Will – A will is a binding document that dictates who will receive your assets and property in the event of your death. The will names an executor who will carry out your directions. If you have minor children or other dependents, it will name a guardian who will care for them should you become incapacitated or die.
- Trust – Trusts are legal arrangements through which a trustee holds the title to property on behalf of a beneficiary. The individual setting up a trust can dictate when and how the beneficiaries receive the assets. The two types of legal trusts are revocable and irrevocable. A revocable trust allows you to retain control over your assets in the trust with the freedom to change the terms or revoke them at any time. With an irrevocable trust, the assets in it are no longer yours, and you can’t make any changes without the beneficiary’s consent.
- Power of Attorney – A Power of Attorney is the individual you designate to manage your affairs and step in should you become ill. This person can make crucial financial decisions on your behalf. Without a POA, the court is left to decide what happens to your assets.
- Medical Directives – Similar to power of attorney, a medical directive designates someone to make healthcare decisions for you if you are unable to do so. The two documents in this directive are a living will and a healthcare proxy. A living will provides instructions for your medical care should you become terminally ill. A healthcare proxy is an individual who will make decisions on your behalf if you become incapacitated.
- Beneficiary Designations – These designations dictate who will receive your benefits when you pass. When you create your estate plan, you should make sure that you regularly review your designations to ensure they are up to date.
Contact Our Estate Planning Attorney In Holbrook NY
Life can take several unexpected turns, so it’s best to be prepared with a well-executed estate plan to ensure all of your assets and affairs are in order. At Gulotta & Gulotta, our estate planning attorney in Holbrook NY will help you draft your estate plan and help you secure you and your family’s future. Be sure to contact us today to learn more and request a consultation!
*Prior Results Do Not Guarantee Future Outcomes*