![]() A medical POA covers all areas of healthcare, including end-of-life care. In that case, a medical power of attorney (POA) lets you designate an individual to make medical decisions on your behalf. Suppose you can’t make healthcare decisions for yourself in the event of an accident or memory loss disorder. To cover your medical bases, Geerdes recommends clients include advance healthcare directives in their plans. ![]() “It’s also about what happens if you become unable to make financial or life-and-death medical decisions.” “Estate planning isn’t just about transferring assets,” says Geerdes. Many people think of an estate plan only as something that kicks in after you die. However, since assets are officially removed from your estate and placed into the trust, they have the benefit of helping reduce estate taxes. These trusts take assets out of your control and transfer control to a trustee-even during your lifetime. To avoid estate taxes, consider an irrevocable living trust. When you die, a trustee you name will take over and distribute your assets. You can even serve as the trustee and make changes as you’d like, from naming beneficiaries to adding additional assets to the trust. While you’re alive, assets remain in your control. This is a relatively simple document that lets your assets pass outside of probate. The two most common types of trusts in estate planning are revocable and irrevocable living trusts. Trusts are estate planning tools that help you avoid the probate process, empowering a trustee you name to distribute your assets according to the trust’s provisions. Trusts are legal “containers” that hold your assets on behalf of your beneficiaries. The probate process in some states can be grueling, which is why many people create trusts. Wills must go through probate, a legal process where the court officially permits your named executor to begin distributing your assets according to the will. For example, your will could state that your sister gets your engagement ring, but all assets in your estate without a named beneficiary should be equally divided between your brother and sister. A will names a legal representative-your executor-who is responsible for directing your assets to the recipients you’ve chosen.Ī will includes provisions for assets with specific beneficiaries and those without.
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