Five Elements of a Basic Estate Plan

A financial advisor at Total Living Plan, Jerry Guttman supports his clients’ wealth management needs. Known for his ability to protect the financial futures of his clients, Jerry Guttman provides assistance in such areas as estate planning. Here are the five basic elements of a good estate plan:

Will: The first document that you prepare when creating an estate plan is often a will. This document sets out who will take over your assets after you pass, along with a guideline for distributing your assets properly. You can also name guardians for underage dependents.

Trust: A trust is a legal arrangement that names one person or institution, known as the trustee, as the legal holder of assets for a beneficiary or beneficiaries. In a trust, you can state exactly how beneficiaries will receive the assets you set aside for them. Trusts also serve to keep your estate out of probate court.

Power of Attorney: If you become incapacitated, a power of attorney denotes who will take over your finances. For couples, this role is typically given to the surviving spouse, but setting up the document is still important, since it gives you more control over your assets.

Health Care Directive: Operating similarly to a power of attorney, health care directives set out who will handle your medical decisions should you become incapacitated. Having this document in place eliminates family disagreements regarding your care, since it grants the power to make decisions to a single person.

Beneficiary Designations: These are not separate documents but, rather, part of many life insurance policies and retirement accounts. When you pass, your designated beneficiaries will receive any funds left in these accounts.