Will-Based Plan
A Will-Based Plan is centered around the Last Will and Testament as its primary document for estate distribution. It directs how one's assets will be distributed upon death. Here's what's typically included in a Will-Based Plan:
Last Will and Testament: The fundamental document that dictates how your assets should be distributed upon your death. It also specifies guardians for minor children.
Contingent Trust: If you have minor children, the will might include provisions to create a trust upon your death, to manage and protect their inheritance until they reach a specified age.
Durable Power of Attorney: This document appoints someone to manage your financial affairs if you become incapacitated. It allows this individual to pay bills, make investments, and handle other financial matters on your behalf.
Advance Healthcare Directive: Also known as a Living Will or healthcare proxy, this document dictates your preferences regarding medical treatment should you become unable to communicate your wishes. It can specify treatments you do or do not want and might appoint a healthcare surrogate or agent to make medical decisions on your behalf.
HIPAA Release: Allows designated individuals to access your medical records, which is crucial when making informed decisions about your care.
Guardian Nominations: If you have minor children, the will-based plan will specify who you want to care for them if you (and the other parent, if applicable) are unable.
Funeral and Burial Instructions: While not always included, some wills contain details about funeral preferences, burial, or cremation instructions.
Letter of Final Wishes: An informal document that might include personal messages to loved ones, location of important documents, or specific funeral preferences. While it isn't legally binding, it can guide family members during a difficult time.
A Will-Based Plan is centered around the Last Will and Testament as its primary document for estate distribution. It directs how one's assets will be distributed upon death. Here's what's typically included in a Will-Based Plan:
Last Will and Testament: The fundamental document that dictates how your assets should be distributed upon your death. It also specifies guardians for minor children.
Contingent Trust: If you have minor children, the will might include provisions to create a trust upon your death, to manage and protect their inheritance until they reach a specified age.
Durable Power of Attorney: This document appoints someone to manage your financial affairs if you become incapacitated. It allows this individual to pay bills, make investments, and handle other financial matters on your behalf.
Advance Healthcare Directive: Also known as a Living Will or healthcare proxy, this document dictates your preferences regarding medical treatment should you become unable to communicate your wishes. It can specify treatments you do or do not want and might appoint a healthcare surrogate or agent to make medical decisions on your behalf.
HIPAA Release: Allows designated individuals to access your medical records, which is crucial when making informed decisions about your care.
Guardian Nominations: If you have minor children, the will-based plan will specify who you want to care for them if you (and the other parent, if applicable) are unable.
Funeral and Burial Instructions: While not always included, some wills contain details about funeral preferences, burial, or cremation instructions.
Letter of Final Wishes: An informal document that might include personal messages to loved ones, location of important documents, or specific funeral preferences. While it isn't legally binding, it can guide family members during a difficult time.
A Will-Based Plan is centered around the Last Will and Testament as its primary document for estate distribution. It directs how one's assets will be distributed upon death. Here's what's typically included in a Will-Based Plan:
Last Will and Testament: The fundamental document that dictates how your assets should be distributed upon your death. It also specifies guardians for minor children.
Contingent Trust: If you have minor children, the will might include provisions to create a trust upon your death, to manage and protect their inheritance until they reach a specified age.
Durable Power of Attorney: This document appoints someone to manage your financial affairs if you become incapacitated. It allows this individual to pay bills, make investments, and handle other financial matters on your behalf.
Advance Healthcare Directive: Also known as a Living Will or healthcare proxy, this document dictates your preferences regarding medical treatment should you become unable to communicate your wishes. It can specify treatments you do or do not want and might appoint a healthcare surrogate or agent to make medical decisions on your behalf.
HIPAA Release: Allows designated individuals to access your medical records, which is crucial when making informed decisions about your care.
Guardian Nominations: If you have minor children, the will-based plan will specify who you want to care for them if you (and the other parent, if applicable) are unable.
Funeral and Burial Instructions: While not always included, some wills contain details about funeral preferences, burial, or cremation instructions.
Letter of Final Wishes: An informal document that might include personal messages to loved ones, location of important documents, or specific funeral preferences. While it isn't legally binding, it can guide family members during a difficult time.
One thing to note about a Will-Based Plan is that, unlike a Trust-Based Plan, assets distributed through a will generally have to go through the probate process. Probate can be time-consuming and costly. It also makes the distribution of your assets a matter of public record. Therefore, while a Will-Based Plan might be more straightforward and less expensive initially, it's essential to consider the long-term implications and costs. Regular consultations with an estate planning attorney can help ensure that the will remains updated and reflects your current wishes and needs.