The basis of your estate plan is probably your will. This is often what prompts people to make an estate plan in the first place. They want to make decisions about how their assets are going to be passed down to the next generation, and so they use a will to define who should get which assets or how financial accounts should be divided.
But a basic will may be just the first step. There are many other estate planning tools that you can use to create a comprehensive plan that addresses your family’s needs. Let’s take a look at two examples below.
An advance directive
First of all, you may want to use an advance directive to make medical decisions. One option is to use a living will, listing out the types of treatment you want or do not want, such as if you do not want to be kept on life support or resuscitated.
A second option is to use a medical power of attorney. When you do this, you select an agent and give them the legal authority to make medical decisions on your behalf if you become incapacitated.
A trust
Next, you may want to put some of your assets into a trust. You can then select a beneficiary to receive those assets and a trustee to distribute them.
One example of how this can be useful is if you have an heir with special needs who qualifies for government benefits. Giving them an inheritance may disqualify them, but you can put the money into a special needs trust so that they retain the benefits they require.
Creating your plan
These are just two estate planning tools to consider beyond a will, and there are many options at your disposal. Take the time to carefully consider the steps you need to take to make a comprehensive plan for your family.