Some estate plans are incredibly complex and involve a half dozen different documents or more. Other Indiana estate plans are incredibly simple and may consist of only a will. Wills are useful testamentary documents that allow people to protect their dependents and distribute their assets after their passing.
Most adults in Indiana could benefit from drafting a will. However, they may also need to consider the addition of other paperwork to their estate plans. Additional documents can protect someone’s legacy after their passing or help connect them with support during a personal emergency. The three documents below are some of the most beneficial additional documents to draft as part of a comprehensive estate plan.
A living will or similar medical declaration
Those experiencing medical issues and those preparing for retirement often think very carefully about their medical preferences and add advance directives to their estate plans. In some cases, people would prefer to forgo any heroic intervention if their condition declines. A living will declaration is a kind of advanced directive that allows someone to instruct medical professionals or loved ones to allow them to pass naturally. Other times, people may want whatever medical support is available. These individuals may want to execute a life-prolonging procedures declaration instead of a living will.
Powers of attorney
Incapacitation after a medical emergency or personal accident could leave someone in a vulnerable position. They could fall behind on their financial obligations or have no one to speak on their behalf about their medical preferences. Powers of attorney allow people to name individuals whom they trust to manage their financial affairs and guide their medical support they are unable to communicate on their own behalf.
Trusts
Although wills are an efficient way to transfer assets to beneficiaries, they aren’t the only means of doing so. Trusts can be a useful way to distribute property as well. People in many different circumstances might find that a trust is a better option than a will. Someone who divorced but has minor children could preserve their children’s inheritance using a trust. Those worried that their beneficiaries might divorce or misuse their inheritance may want to create trusts. Those worried about estate taxes, Medicaid eligibility or creditor claims could also derive multiple benefits from the integration of a trust into their estate plans.
The addition of extra documents to an estate plan can enhance the protections offered by a will and give a testator more peace of mind. Revisiting and expanding a simple estate plan can be a smart move for those concerned about their health or their legacies.