When you decide to make an estate plan, your decision may initially be spurred by thinking about what will happen to your assets when you pass away. You know that you have tangible assets, such as your home, along with financial assets, like investments or savings. These need to be passed to the next generation, and your estate plan helps to dictate how that happens.
This is an important place to begin, but it may not be enough. Your estate plan can also address far more than just the assets that you own. Below are two examples of other areas to consider.
Naming a guardian for your child
If you are a parent with a child who is still a minor, one thing you have to think about is who will care for your child if you pass away unexpectedly or become incapacitated. You can put the general framework in place by selecting a guardian. This can streamline the process, giving the child more stability during a difficult time. It can also give you peace of mind because you know you have chosen the right person to take on those parental responsibilities.
Making medical decisions
Next, you have to consider how medical decisions are going to be made if you are incapacitated). You can do this with a health care directive (sometimes known as a living will, which allows you to make decisions in advance and list instructions for your doctor. But you could also consider using a medical power of attorney to choose someone who will be in charge of making these important decisions on your behalf.
These are just two examples of ways that you can use your estate plan to do more than split up your assets, and they help to demonstrate why it is so important to understand all of your legal options.
