As we get older, planning for the future becomes increasingly important. And when it comes to planning for your the future of your family, as well as for your own end-of-life wishes, you may become overwhelmed by the idea of creating an estate plan. Even knowing what an estate plan is may be confusing for a lot of people. Most folks find that working with estate planning lawyers can help answer their questions and alleviate their concerns about this process. Your estate planning lawyers will also ensure that you are not leaving anything out of these important documents. But before you get started on your estate planning, it may be helpful to understand some basic definitions of — and differences between — the following terms.
What is a legal will?
A legal will, also known as a last will and testament (or simply as a will), is a document that outlines how you want to distribute your assets after you pass away. Within your will, you can select your heirs, decide where your possessions will go, and who will maintain ownership of any property or other commodities. If applicable, you can also appoint a guardian for children or pets under your care.
Is a will the same thing as an estate plan?
While the terms are related, they are not synonymous. A legal will is just one part of your estate plan. The three most important legal documents you can have are your will, your living will, and a power of attorney. A comprehensive estate plan will involve all three, and in some cases, some people will also add a living trust. These documents work together to indicate your wishes for not only your property and possessions but also for your healthcare.
What is the difference between a legal will and a living will?
Your legal will tells your lawyer and loved ones your wishes for after you pass on. It takes effect after you die. Your living will, on the other hand, refers to how you want your medical care handled in certain scenarios and at the end of your life. For instance, you can decide whether you want to donate organs, how you want your care handled if you are unable to make your own decisions, or whether you want an autopsy performed after you die.
What is a power of attorney?
Granting power of attorney involves putting your complete trust in another individual to make your health or financial decisions, should you be unable to do so yourself. The name may be confusing for some, but this does not mean handing over power to your lawyer. It means that you appoint someone — like a sibling or one of your children — to make choices about your care on your behalf. It can be a substantial responsibility, so you should give careful consideration to your choice and talk openly about it well in advance.
How soon should I start planning my estate?
Sooner than you think. If you have a home, children, or other assets, we advise you to start the estate planning process as soon as possible. If circumstances change, these documents can be amended later on. But should the unexpected occur, you and your loved ones will have peace of mind that your wishes will be carried out. If you have questions about wills and other important legal documents, contact our estate planning lawyers to get started today.