Planning for the future can be a complex and difficult process, and many Minnesota adults avoid taking this step for that reason. To create an estate plan that will provide the right amount of protection, it is necessary to consider what will happen to your property and assets after your passing. This can be an unpleasant thought, but it is crucial for your future interests. With the right plans in place, you can have peace of mind regarding your personal property and the interests of your loved ones.
There is no one-size-fits-all solution for estate planning. What your complete plan looks like depends on the details of your individual estate, your objectives for your loved ones and other factors. In order to have the ability to look to the future with confidence, you will benefit from having an understanding of the specific things you need to have a complete plan that provides you with security and protection.
The details of your plan
What you need for your plan depends on your goals for the future and what you want to happen to your personal property after you pass. You can also create documents that will allow you to control certain things, such as your medical care preferences in the event of your incapacitation. Some important things you may need in order to create a complete plan include:
- A basic will to outline your wishes for the distribution of your property
- A trust — a tool that allows you to set aside and protect assets for a specific use
- A letter of intent that you will address to the executor of your estate
- Updated beneficiary designations on important accounts, such as life insurance
- Guardianship designations for the care of any minor children you have
- Healthcare power of attorney in case of your incapacitation
- Other powers of attorney who can help in case of your incapacitation
These are basic elements of many estate plans, and these tools could provide you with the appropriate amount of security you need. An assessment of your specific case, your goals for the future and other matters can help you understand what you need to include in your estate plan. While a will is the basic building block of most estate plans, additional documents can help you have more control over certain medical, legal and financial matters in the future.