Most people realize that their estate planning should ensure correct distribution of all their assets after they have passed on. Although this is the most important element of any estate plan, it is vital for you to understand that there is more to a well-designed estate plan. You can ask a family law attorney in Denver, Colorado about estate planning, but you should also know what factors to consider for a good estate plan.
Power of Attorney
The power of attorney is an authorization to act on behalf of someone’s private affairs or business. This is sometimes used in the event when a person is severely incapacitated or is unavailable. Your estate plan should identify who would act on your behalf in case of your absence or incapacity.
A trust is used to ensure that all assets are given specifically to the people designated in the trust. All your assets, whether old or new, should be transferred to the trust for proper distribution. All assets not included in a trust will be sent to a probate court in order to distribute it to the remaining family members.
However, you should consider all your future financial plans and investments before creating a trust. If you become incapacitated, the trustees can manage your assets without seeking a court order. Compared to a will, a trust is an all-inclusive and flexible document.
A living will
All estate planning should include an advance directive or a living will. This includes appointing physicians to make decisions related to your health if you are not able to do so. The lawyers can also recommend that you grant a power of attorney to a family member or a close friend to make these decisions for you.
A careful estate plan is essential if you want to keep your assets in your family. It also ensures you’re your family and relatives will be cared for even after you’re gone. Consult family law experts in Denver to help you plan one.