Table of ContentInformation and execution of the testator, The executor and his powers, guardianship of dependents, disposition of assets. Enable JS and disable any ad blockers. A last will and a power of attorney are two of the most common legal documents that authorize another person to take control of their affairs. Because these documents perform very different functions, even if they come into effect under different circumstances, a power of attorney does not annul a will.
A simple will is defined as a legal document that is used to distribute your assets after your death. This is the most common type of will. It involves writing down your wishes to make your after-life distribution plan clear to those who stay to fulfill it. Assets such as bank accounts, real estate and stocks can be transferred to the beneficiaries listed in the will.
A trust is a legal agreement in which a trustee holds assets for a grantor for the benefit of a beneficiary. So, instead of having assets in your name, you can keep them in a trust. Trusts are useful for estate planning because they can help keep your assets out of probate, which can be a slow and expensive process. A trust can also establish detailed rules about when and how beneficiaries receive their inheritance.
A will is a public document once filed with the court. Similarly, if you are incapacitated, anyone who wants to manage their affairs must go to court to gain control of their assets. Conversely, a trust can eliminate the need to create public records. A complete estate plan includes a specific plan to provide you with the treatment you would want when you can't make decisions or communicate them, no matter what age you are.
Without proper medical care instructions, you may not get the treatment you want. Beneficiary designations in things like retirement accounts replace any instructions in your will or trust. This is because assets that go to a designated beneficiary generally do not become part of your estate or trust. They go directly to the beneficiary.
Some of the most common documents include a will and a will, a power of attorney, a living will and a health care power of attorney. Some people also need one or more trusts. Insurance policies may also have a place in your estate plan. The specific documents required depend on your circumstances.
Living wills, health care powers, & of advance medical care directives You may want to include a POA in your estate plan so that someone can make important life decisions, including about your health care or finances, when you can't.