The Two Basic Categories of Estate Planning
While estate planning has many different documents it comes down to two categories.
One of the best ways to begin estate planning is to break the process down into two categories, according to the Motley Fool in “The Estate-Planning Documents Everyone Needs.”
There are all sorts of different legal documents in estate planning that are not familiar to those not in the legal profession and this sometimes causes the estate plan to be put on hold. However, it does not have to be that complicated.
The first type of estate planning document determines what happens to your belongings after you pass away. This category includes wills, most trusts and even things like a retirement account that has a beneficiary designation.
The second type of estate planning document determines who takes care of your affairs if you are not able to do so. This category includes powers of attorney, most trusts and advanced health care directives.
There are two main questions that are pretty simple: what do you have in possessions and where do you want them to go after you pass away. An estate planning attorney can guide you to an estate plan that meets your needs.
Reference: Motley Fool (Nov. 7, 2016) “The Estate-Planning Documents Everyone Needs.”