If you own any kind of property you want to pass on to your children or other people when you die, you must prepare for estate planning. It can also be helpful for emergency medical situations where you become incapacitated.
Many people think that estate planning is for the rich, but that is not so. Everyone should start thinking about planning their finances once they turn 18. To understand what goes into the plan, you must first know which documents you need. A lawyer for estate planning in Ridgeland can help you initiate the process and learn the basics.
Documents you need for estate planning
Last will and testament.
The Last Will and Testament state your decisions regarding asset distribution after they pass away. When you draft a will, you mention the name of the beneficiaries to whom you want to pass your asset to. You can mention who gets what so there are fewer risks of arguments between family members. It is an essential document that everyone must have.
A durable power of attorney.
A durable power of attorney is one that takes care of your finances when you pass away or become incapacitated. Nobody thinks they are going to be disabled one day, yet many people unexpectedly do. When you appoint a trustworthy person to take care of certain matters on your behalf, you can have peace of mind. They can handle investments, manage medical care, and pay bills.
Revocable living trust.
A revocable living trust is much like a will but allows you to distribute your assets while you are alive when you become incapacitated. It basically dictates what happens when you can no longer take care of your own finances and allows you to transfer properties before you die. A revocable living trust can be used as an alternative to a will.
Health Care Power Of Attorney.
Also known as the Medical Power of Attorney in Hammonton, a Health Care Power Of Attorney allows one to choose someone to take care of their medical decisions. You can state your wishes regarding your healthcare decisions, and this person can overtake the responsibilities when you become incapacitated or pass away.
Special needs trust.
A Special Needs trust is specially made for children or adults who suffer from a physical or mental disability or a chronic illness. This trust allows the beneficiaries to receive money or income because they do not have the ability to earn it themselves. It reduces the eligibility for SSD, SSI, and Medicare benefits.