When considering estate planning, it can be quite simple to assume the main objective of these solutions is to deal only with future concerns such as providing for your loved ones, planning for retirement, organizing necessary medical arrangements, and other similar “what ifs”.
However, one important benefit of an estate plan is often overlooked, even though it pertains to the present, and that is the fact that estate plans can easily eliminate some of the most common worries and stresses we deal with in our daily lives. To that end, here are just some of the ways estate planning can give you peace of mind and lead to a stress-free future:
Advance directive
An Advance Health Care Directive is a document outlining your instructions and preferences regarding medical treatment in case you become incapacitated or otherwise unable to make those decisions for yourself.
This document will also give you the opportunity to make decisions about any life-sustaining measures in extreme cases, including a Do Not Resuscitate document, deciding whether you wish to undergo life support, as well as choosing to participate in organ donation. By clearly stating your wishes in case of medical emergencies, an advance directive will allow you to protect your loved ones from having to make any difficult decisions in the future.
Powers of attorney
While it might be similar to advance directives, a Medical Power of Attorney will appoint another person to make the necessary decisions regarding your health in case of incapacitation, if that is what you prefer. On the other hand, a Durable Power of Attorney is another aspect of estate planning you should consider.
This document refers to your personal finances and appoints another individual to make financial decisions and perform financial transactions in case you are physically or mentally incapacitated. In both of these instances, an appointed individual is only able to make decisions until your recovery or death, which is why they are so important.
Making a personal will
A personal will is truly one of the most important estate planning aspects. If you have anything from a bank account, jewelry, and a car to a home, a business, and life insurance, this document will allow you to name the individuals or organizations you would like to receive these assets from after your death.
In some countries, such as Australia, the recent coronavirus pandemic has caused a significant increase in demand for will & estate appointments. Considering the fact that this is quite a crucial document, many Australians are hiring experienced lawyers in Sydney and other cities across the country when planning for their future. Such professionals will listen to your needs and requirements and ensure your wishes are met after your passing, thus giving you some necessary peace of mind in these difficult moments.
Creating a living trust
A living trust, however, is a document that will help to place your assets in a trust for your benefit while you’re still alive, and then transfer those assets to named beneficiaries once you pass away. Living trusts are generally controlled according to your personal wishes and requirements and are overseen by a specific trustee you choose as well. In many cases, assets that are left in a living trust will allow your beneficiaries to receive their inheritance more quickly, as it doesn’t need to go through probate court, and is a good option if your family requires a quick legal resolution after your death.
Protecting loved ones
Another benefit of estate planning is that it allows you to ensure your loved ones will be taken care of after your passing. During this process, you will be able to name all individuals with who you’d wish to receive your assets, thus giving you the opportunity to create a more stress-free future for everyone involved in this process. In case you have a spouse and/or children, these individuals are often the first and most logical choice when deciding to whom you’d like to direct your assets. However, you could also name other family members, friends, or even certain organizations if those happen to be your specific wishes.
Protecting digital assets
Although this might not have been a consideration until quite recently, the transfer of digital assets can also be included in estate plans. From email addresses and social media accounts to cloud storage and online banking, we have a number of different online accounts in the modern world.
It’s very important to put someone in charge of deactivating or deleting those accounts after your death, not only to prevent potential fraud but also to ensure your loved ones won’t feel any pain due to your digital presence. In terms of other accounts like those in financial institutions, they will likely be automatically deactivated once the process of transferring assets to beneficiaries begins.
Final comments
Evidently, careful estate planning is among the most important things we could do in our lives. It allows us to secure our assets, protect our loved ones and everyone we care about, and lead to a stress-free future for everyone involved.
