To many people, wills are synonymous with estate plans. Wills are the most common testamentary instrument. Many people only ever draft wills and never expand their estate plans. They simply want to ensure that the right people inherit their property or that their children have protection in the form of a guardian if they die.
While a simple estate plan is better than no estate plan, robust planning is the best protection available. People who have already drafted wills or decided to create wills may want to consider expanding their estate plans to include a variety of other documents as well. The three documents below are useful for adults in a variety of different circumstances.
Powers of attorney
Estate plans can protect people from personal emergencies rather than simply addressing what happens when they die. People who draft powers of attorney can designate people they trust to handle their affairs in an emergency. When the principal who drafts the documents becomes incapacitated, their agent or attorney-in-fact can act on their behalf. Young professionals, college students and divorced individuals are among those who may require the protection of powers of attorney.
Advance directives
In an emergency scenario, family members and medical professionals may be unsure of what treatment to provide. When in doubt, medical professionals defer to current best practices. What their employer requires could be very different from what the patient prefers. Advance directives provide an opportunity to clarify personal medical preferences regarding everything from life support to pain management and anatomical donations. Advance directives help ensure people receive the care that they want and help prevent their loved ones from fighting over choices related to their medical treatment.
Trusts
Wills are not the only way to allow others to inherit from an estate. Trusts can serve a similar purpose. There are many scenarios in which a trust might be a better option than a will. Maybe the beneficiaries of an estate are minors. Perhaps there are complications such as an abusive marriage or a substance abuse issue. Trusts allow people to create more structure for an inheritance and prevent scenarios in which a large windfall might make a beneficiary ineligible for critical benefits.
Looking at ways to expand an estate plan and optimize personal protection can be a smart decision. Wills, trusts and a variety of other documents can be useful for people in emergency situations or after a tragedy occurs.