Many adults across Ohio do not yet have estate plans. If you are among them, you may have put it off thinking you do not have enough time or, possibly, enough assets to make it worthwhile. However, an estate plan does more than dictate where your belongings go after you die. There are many important benefits that come with having an estate plan in place, regardless of your degree of wealth.
According to Bankrate, your estate plan does not have to be complex or extensive to help you accomplish some of the most fundamental estate planning goals. In fact, a simple estate plan needs three main components: a will, an advance health care directive and a power of attorney.
Your will allows you to dictate who you want to get what after your death. Having a will in place ensures that you do not die “intestate,” meaning you leave the distribution of your assets up to a court-appointed administrator.
The advance health care directive
There are several different types of advance directives. They all give your doctors or loved ones an idea of your medical wishes, should you become incapacitated.
The power of attorney
A financial power of attorney is important, too, because it helps ensure the payment of any outstanding debts you might have when you die. The party you give power of attorney handles your financial affairs if you are unable to do so.
Having a simple estate plan typically makes it so your estate settles more quickly. It may also help your beneficiaries access what you leave them faster than they would otherwise.