Essential Estate Planning Documents
Estate Planning Essentials: A Quick Overview of the Foundational Documents
Hi, my name is John Bayog, and I’m the owner and founder of Bayog Law. In today’s post, I want to start an educational series about why estate planning is essential. The goal of this series is to educate you on the importance of having an up-to-date estate plan to ensure your wishes are carried out, your loved ones are protected, and your assets are managed efficiently.
Below, I’ve included a video that covers the same subject matter as this post. Whether you prefer to read or watch, the video will give you a quick, informative overview of the foundational estate planning documents every plan should include. We’ll dive deeper into each of these documents in future posts and videos, but for now, let’s keep things high-level.
Wills and Trusts: The Heart of Your Estate Plan
At the center of any estate plan is either a will or a trust. There are will-based estate plans and trust-based estate plans, and while we always recommend a trust, that’s a discussion for another day. At a minimum, you should have a will.
If you don’t have a will and you pass away, you’ll die intestate, meaning the state will decide who gets what from your estate—and you might not agree with their decisions. This is especially important if you have minor children. Without a will, the state will also decide who becomes their guardian, which may not align with your wishes.
A trust, on the other hand, gives you far more control. Not only can you specify who gets what, but you can also dictate when and how they receive it, and under what conditions. Trusts offer greater flexibility and control, making them a powerful tool for estate planning.
Ancillary Documents: Equally Important
In addition to a will or trust, there are a few other essential documents that often get overlooked but are just as critical:
Durable Power of Attorney: This document allows someone to make financial decisions on your behalf if you become incapacitated. Whether it’s paying medical bills, managing your investments, or transferring money, this ensures that someone you trust can handle your finances when you cannot.
Healthcare Proxy: This is a must-have. A healthcare proxy designates someone to make medical decisions on your behalf if you’re unable to. Without it, the hospital may make those decisions for you, and you might not agree with their choices.
Living Will: While not legally binding, a living will informs your healthcare proxy of your wishes regarding end-of-life care. It can guide them on whether to keep you on life support, for instance, which can help avoid unnecessary medical costs that could deplete your estate and affect your beneficiaries.
Wrapping Up
These are the foundational documents that no estate plan is complete without. In future posts, we’ll explore these documents in greater depth and cover other important aspects of estate planning.
If you have any questions or would like to discuss your estate plan, feel free to reach out. Right now, we’re offering free 30-minute consultations, so schedule one while you can! Estate planning is for everyone—protect your future today.
Follow us on social media or check back for more posts in this series. Thanks for reading, and take care!
