Thinking about the future and planning for what will happen in your old age can be incredibly upsetting. However, one of the most important things you can do is plan your estate. Unfortunately, with so many different options, many are often unaware of the differences between an estate plan and a will. As such, it’s important to connect with Pennsylvania estate planning attorneys who can help you achieve peace of mind for the future.
How are an estate plan and a will different?
It’s important to understand that an estate plan and will, though often used interchangeably, are not the same thing. Generally, your estate plan is several documents you create, and a will is one aspect of that plan. Your estate plan as a whole encompasses several legally binding documents that you’ll establish throughout your life to plan for your future in the event you become incapacitated or pass away.
If you inform an attorney that you’d like to create an estate plan, generally, the foundational document of this plan is a last will and testament. This document will determine how your assets will be distributed upon your passing. You’ll appoint an executor to oversee the distribution process and ensure your last wishes, as written in the will, are adhered to.
What should I include in my plan?
Your estate plan can be an incredibly comprehensive process that details how your assets will be handled, among other important considerations. For example, you’ll include a will, but you should also consider establishing a healthcare and financial power of attorney, trusts, and a living will.
A healthcare power of attorney is often used in conjunction with a living will, also called an advance healthcare directive. A living will detail your medical wishes in the event you become incapacitated or unable to dictate the care you would like to receive. A healthcare power of attorney allows you to appoint someone of your choosing the legal authority to make medical decisions on your behalf.
A financial power of attorney works similarly, allowing you to appoint someone to oversee and make decisions for your finances and assets. For example, they can make investments using your funds according to your wishes should you be unable to dictate these matters.
Trusts are another beneficial estate planning document that allows you to transfer assets to a third party. These essentially grant someone of your choosing permission to manage assets on your behalf, often for tax purposes.
As you can see, there are several documents you should consider establishing as part of your estate plan, in addition to a will. At Friedman Schuman Layser , our dedicated legal team understands how overwhelming creating an estate plan can be. That’s why our dedicated firm will do everything possible to help you create a comprehensive plan to help you achieve peace of mind. Connect with us today to learn how we can help you explore your options.
