Planning Your Estate: 3 Legal Documents You Should Have

Estate planning is an important part of protecting your assets, ensuring your family is taken care of upon your death, and making sure that your wishes are honored in a medical emergency. In order to accomplish each of these goals, you will need to obtain three important legal documents. These documents are a will, a living will, and a power of attorney. Continue reading to learn more about each of these documents and why they are so important to your estate planning needs.

Will

Most people already have an idea of who they want to inherit their assets when they die. In many cases, these wishes may have even been shared verbally with the intended beneficiary. Unfortunately, simply telling your child or grandchild that you want them to have a specific item upon your death does not constitute a legally binding contract. Consequently, your loved one would have no choice but to hope that the assigned executor of your estate chooses to honor your wishes. This type of situation can be avoided by legally drafting a will and filing it with the court. This document will allow you to be as general or as specific as you wish when it comes to the bequeathing of your assets. This document can also be used to leave instructions regarding your burial or cremation and to express your wishes regarding other important decisions such as who will care for your children if you pass away while they are still minors. 

Living Will

A living will is similar to a traditional will in the fact that it allows you to leave instructions regarding your personal wishes. The difference is, that a will is designed to be executed once you die. A living will on the other hand goes into effect if medical decisions are required and you are not able to make these important decisions at the moment. For example, if you are seriously injured and require the use of life support, your living will allows you to decide for yourself whether or not you wish to receive this type of treatment rather than requiring a family member to make this decision for you.

Power Of Attorney

A power of attorney document is a bit different than the other two estate planning documents previously discussed. This is because while wills and living wills allow you to make several different decisions, a power of attorney simply allows you to designate someone else who you trust to make important decisions for you. This decision-making power would only go into effect if you are ever unable to make your own decisions due to competency or medical issues.

For more information or for help preparing these documents, talk to a legal office that offers these services—such as Wright Law Offices, PLLC.