What are the components to estate planning?

| Feb 9, 2021 | Estate Planning |

As residents of Nevada grow older, they may begin to think more about their passing. Specifically, they might think about how their heirs will handle things after their parents or grandparents pass away. Effective estate planning could help seniors take practical steps to create a will that distributes assets and establishes helpful directives. Besides writing a will, other steps might be worth performing in anticipation of life-changing events.

Things to consider when engaging in estate planning

What might heirs do when they inherit a house that requires extensive repairs? By stipulating in the will that the house go up for sale immediately, the testator might be taking the right steps. Wills are not only about deciding “who receives what” but may also involve putting forth decisions about the estate in advance.

Sometimes, a testator might worry about whether the beneficiaries possess the capabilities of managing a significant amount of inherited money. Perhaps stocks and other investment vehicles may not be something they fully understand. What if a business becomes part of the estate? Creating a trust might prove advisable as someone with better knowledge could manage the trust.

A will and a trust represent two components of an estate plan. Whether someone wishes to choose one or the other varies from person to person. No matter how someone decides to plan his or her estate, doing so with careful deliberation may lead to a desirable result. Part of the process involves looking at other components of estate planning with the help of an attorney.

Additional estate planning items to consider

A trusted relative might be the appropriate choice for power of attorney authority. This document establishes someone as an “agent” and allows the agent to access bank accounts, sign the person’s name on tax forms and more. An older person may find it necessary to move responsibilities to someone else as age could make handling affairs difficult.

Health might suffer significantly, and catastrophic incidents could occur at any age. A living will designates health care decisions for the incapacitated. A health care proxy serves a similar duty as a POA agreement with the proxy focusing on health care matters.

It’s never too early or too late to create an estate plan, which starts with understanding its common components. Speaking with an estate law attorney to discuss the required steps is advisable.