Master Estate Planning Basics Securing Your Wealth Legacy

Key Components of Estate Planning

One of the primary components of estate planning is the creation of a will. A will is a legal document that outlines how your assets should be distributed and can also appoint guardians for minor children. Without a will, state laws will determine how your assets are distributed, which may not align with your wishes. Additionally, establishing a trust can provide more control over how and when your assets are distributed, potentially offering tax benefits and protecting your privacy.

Another critical element is the power of attorney, which grants a trusted individual the authority to make financial or medical decisions on your behalf if you become incapacitated. This ensures that your affairs are managed according to your preferences even if you are unable to communicate them yourself.