Estate Planning involves the preparation of the management of your assets after you have passed. Although we don’t tend to think about what happens after we are gone, thinking about the management of your assets can be beneficial in lessening the stress for loved ones and ensuring their future financial security.
There are a number of tools you can use to reduce the burden on loved ones should anything happen to you. Listed below are a few of these instruments and how they can be used:
Will
A Will is a legal document that details what you wish to happen with your assets after you pass away. It will name the person or persons you want to be your executor, it will state who is to receive your assets when you die, and it may stipulate any further details including your funeral desires or any guardians of your children.
Enduring Power of Attorney
A ‘General Power of Attorney’ is a document that individuals use to allow another person to make decisions on their behalf regarding their finances, business, and personal matters. An ‘Enduring Power of Attorney’ is given with the intention that it will continue to be effective, even after you lose mental capacity.
Enduring Guardianship
An ‘Enduring Guardian’ can make decisions for you in areas such as accommodation, health, and services if you lose the capacity to make your own decisions at some time in the future. It differs from a ‘Power of Attorney’ in that they cannot make decisions about your money or assets.
It’s important that your individual Estate Planning needs are considered and this article only discusses the basics. In order to discuss this in more detail, we recommend seeking professional advice by contacting the team at Crest Financial Services.