Many people wait until they are much older to create an estate plan. However, contrary to belief, you don’t have to have much money or own millions in assets to create an estate plan or even a Will. If you own just one car and have a bank account, you should at least have a Will. A full estate plan is tailored to your needs and your current assets. As you add assets to your name, you can amend the estate plan so that you are always covered. Without an estate plan – or at least a Will, the State will dictate who gets your assets.
Illnesses and accidents happen. You can’t predict them. If an illness or an accident incapacitates you, an estate plan allows someone to handle your finances while you cannot. It can also prevent nursing homes, doctors and other creditors from taking your assets. If you should die because of an accident or illness, an estate plan can help lower taxes, depending on your situation.
A South Carolina estate planning attorney can help you determine what you need in an estate plan, whether it is just a will, power of attorney, and/or other estate documents.
The most common part of an estate plan – the document most people are familiar with – is the will. A will gives instructions to your heirs on what to do after your death. You can include:
Who gets your assets after your death.
Your final wishes as to whether you want to be cremated, buried, both, have a huge funeral, who you want to officiate, etc.
However, this is only part of an estate plan. A complete estate plan also plans for what happens should you become incapacitated.
Two types of powers of attorney exist: General durable power of attorney for financial matters and health care power of attorney. You do not have to name the same person for both. You can give your power of attorney as much or as little decision-making power as you wish. You can also break the powers of attorney up. For example, if you want one person to manage your bank account and pay day-to-day bills but not manage your retirement accounts, you would have two separate powers of attorney, giving each person the power to handle separate factors.
If your relationship with your power of attorney ever changes, be sure to revise your power of attorney, if deemed appropriate.
If you do not have an estate plan or a will, or if you need to change your estate plan, contact our office for a consultation.
We are here to help! Give us a call at 864.760.0221 or email us at orders@smirandalaw.com. We look forward to hearing from you!
