Essential Documents You Need for Estate Planning

One of the most responsible things you can do to protect your assets for your loved ones is to pursue an estate planning strategy. Because everything you own, from your home to your life insurance policy and favorite sports paraphernalia, is part of your estate, managing it can be complicated. Ensuring that it all goes to the right parties after your passing can be even more difficult. By working with a lawyer, this process can be much easier, especially because they can show you which essential documents you need for estate planning strategies that are comprehensive and address all of your wishes.

The team of Alabama attorneys at Southern Estate Lawyers can provide the assistance you need as you begin putting your estate in order. With our decades of experience, we can recommend the right options depending on your circumstances.

Call (251) 444-7000 to speak with one of the estate planning lawyers at Southern Estate Lawyers.

Vital Estate Planning Documents

The Options Lawyers Recommend

Estate planning lawyers recommend a few key documents to help you prepare your estate for any eventuality.

Wills

Wills are some of the most popular and important estate planning documents. Also known as a last will and testament, a will ensures that your wishes are carried out when you die. It describes how you’d like your property and assets distributed and also designates who can take care of dependents like pets and children. You have a lot of control over how your assets are divided. If the will is drawn up correctly, your wishes will be respected.

Once you pass away, the will is brought to probate court, which will authorize the executor to distribute the property as spelled out in the document. If you die without a will, you will be considered intestate, so your assets will be distributed according to Alabama intestacy laws.

Often, people hesitate to write a will because they think it is something that only older people do. It’s actually a highly important document to prepare no matter how old you are.

Power of Attorney

A power of attorney is a document that gives another person power over certain aspects of your life if you’re not able to manage them yourself. A general power of attorney allows the designated person to take legal actions on your behalf, including making financial decisions. A limited power of attorney designates a person to act on your behalf in a more limited manner, and it typically expires after a stated period of time. For this reason, it’s not a common tool used for estate planning purposes. A durable power of attorney is a modifier that can be added to a standard power of attorney, and it keeps the document valid even if you’re incapacitated.

Power of attorney is vital for those who don’t have a spouse or children who can make the necessary decisions. If you don’t have this document in place, the court will make decisions for you.

Revocable Living Trust

Another important estate planning document is a revocable living trust. It can help you manage your assets during your lifetime and then distribute them after your passing. You place assets into the trust and that prevents them from having to go through probate once you die. Keep in mind that once they are in the trust, they belong to the trust. You still maintain control of them, but they are not part of your estate. That’s extremely helpful for tax purposes.

A revocable living trust can be amended whenever you’d like, and the assets don’t go to the beneficiaries until you die. If they garner interest, it goes to you during your lifetime and is taxable.

Health Care Directive

A health care directive is a group of documents related to your medical care. These allow you to appoint someone to make medical decisions for you when you can’t. The most common of these documents are living wills. Living wills give you the chance to state your healthcare preferences in advance. For example, if you would prefer not to be resuscitated, you can add that to the living will.

You can also create a medical power of attorney, also called a health proxy, which gives a person the right to make medical decisions on your behalf if you’re incapacitated.

At Southern Estate Lawyers, we bring more than 30 years of experience to each case we represent. 

Benefits of Estate Planning

Estate planning serves a number of purposes. One of the most crucial is that it can help smooth the probate process for loved ones. Some documents can even allow certain assets to skip probate altogether. Because going through probate takes time and could give rise to disputes, having clear documents and everything in order can make the process run much more efficiently.

Estate planning ensures that your wishes are respected. Not leaving a will, for example, could mean that the wrong people get certain assets. That could put property and even businesses at risk. Estate planning is also essential if you have dependents whom you want to ensure are taken care of. Although guardianship recommendations aren’t binding, since the court will have to consider whether the decision is appropriate for the child or other dependent, they can have a significant influence on what the court ultimately decides.

Another benefit of estate planning is that it allows you to grow your wealth. By creating trusts, for example, you can save on taxes while still maintaining control of the assets.

Choosing Estate Planning Solutions With the Help of Experienced Lawyers

Schedule a Consultation With Southern Estate Lawyers

It is never too early for estate planning strategies. If you have any kind of assets, ensuring that they’re protected and that those you love can be taken care of if something happens to you can bring you the peace of mind you need.

At Southern Estate Lawyers, our team of estate planning lawyers can help you decide on the most appropriate options for your unique circumstances.

Call our team at (251) 444-7000 to learn more about our services.