3 key components to include in an estate plan

On Behalf of | Sep 12, 2022 | Estate Planning

Many people n Minnesota delay creating estate plans. Sometimes, they do so because they have concerns about the potential time or expense involved in the process. Other times, people neglect to create estate plans because they do not feel they have enough assets to warrant one. Yet, everyone, regardless of socioeconomic status or income level, benefits from having an estate plan, and the plan does not have to be intricate to prove effective.

Instead, Bankrate notes that you should be able to create a highly effective estate plan that takes into account some of the most important estate planning objectives by including three main parts: a will, a power of attorney and an advance directive for health care.

1. A will

Most people recognize that a will gives you a chance to say who you want to take ownership of your assets once you die. If you have minor children, you may also wish to use your will to designate someone as a legal guardian, should the need arise before they reach adulthood.

2. A power of attorney

There are different types of powers of attorney. Some give someone else the ability to make financial decisions and moves on your behalf. Others give someone you trust the ability to make decisions regarding your medical care.

3. An advance health care directive

An advance directive tells your medical team and loved ones what medical care you desire if you become unable to communicate your wishes due to some type of incapacity.

Including these three elements in your estate plan should help you cover your bases and maintain control over certain aspects of your life and legacy.