5 Key Elements of a Good Estate Plan

estate plan

Regardless of your age or your estate value, financial planning is paramount. A good estate plan helps you preserve your wealth, decide its future, save taxes, determine your health-related wishes, and even increase its value while it is being protected for your heirs. However, with all the legal processes and documentation, it can be confusing for a layman. And choosing your heirs is no easy task either. Nevertheless, you should sit down with your estate planner and make sure you create the perfect plan that matches your needs and fulfills all your dreams.

Here are five key elements that a good estate plan should include-

  1. Will: This is the first and most essential document required in an estate plan. You can give names of your beneficiaries, distribution plan, and any of your personal wishes in the last testament. You will be required to choose an executor who will be the legal representative at your demise and responsible for carrying out all your stated wishes. You can select guardians for your minor children. You must keep this document safe, and only the executor should know about its location.
  1. Trust: A trust is a legal arrangement where you (the trustee) give your assets to another person or institute like a bank to hold for your beneficiary until the time comes. Setting up a trust is very advantageous because it prevents the probate process and reduces estate taxes.
  1. Power of Attorney: A power of attorney document is required if you become incapacitated and cannot make accurate decisions for your assets. The person you appoint your attorney-in-fact will take all the financial decisions on your behalf.
  1. Beneficiary Designations: You should name your heirs and beneficiaries in your will. It is required because if your assets undergo the probate process, the probate court will decide who gets your estate according to the state’s laws.
  1. Health Care Directives: Medical directives include various legal documents related to your health. It may consist of a health care proxy, durable power of attorney, a living will, and healthcare instructions, to name some.

About Castle Wealth Group

Contact Castle Wealth Group for all your estate planning needs. We build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website or call us at 844.885.4200 or email us for your financial advice.

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