While having an estate plan is the first step in the right direction when planning how you want to distribute your assets after you die, you cannot leave the estate plan once you finish it. According to the U.S. News, you must review your estate plans regularly.
Once you have an estate plan in place, there are several documents you should always have.
Powers of attorney
There are two types of power of attorney to make sure you have. The medical power of attorney names a person to make medical decisions for you and the financial power of attorney allows another person to manage your finances. Powers of attorney kick in when you can not make decisions for yourself. For instance, if you become incapacitated after an accident, you cannot voice your preferences for medical care to your doctor. Instead, the power of attorney would control your medical care per your wishes.
A financial power of attorney can manage all of your finances or you can limit the scope of the power. For instance, you may name a financial power of attorney for tax purposes but another for investments.
Guardianship plans
If you have minor or adult children with special needs, you must include guardianship plans. Guardianship plans ensure that the person you choose takes guardianship of your children. If you do not have a written plan, the court takes control and your children may not end up with the person of your choice. When it comes to guardians, make sure you choose someone you trust with your kids and that you know will follow your wishes.
Review your estate plan after every major life event to ensure that it remains current.
