Creating a Minnesota estate plan offers benefits for you, but it also makes things easier for your loved ones. Yet, many people mistakenly believe estate plans take a lot of time and money to make and put off doing so as a result. In truth, an estate plan does not have to be complex to be effective.
Instead, Bankrate notes that many people accomplish their most pertinent estate planning goals by creating plans that include at least three components: a will, a power of attorney and an advance medical directive.
Known as dying “intestate,” dying without a will has the potential to create unnecessary and avoidable trouble for your loved ones. It may, too, lead to disputes about who should inherit your assets once you die. Drafting a will and outlining where you want your assets to go makes things easier on your family at what is already a difficult time.
Powers of attorney
Powers of attorney come in several different types and serve several different functions. Financial powers of attorney give someone access to your bank accounts or similar monetary affairs. Health care powers of attorney give someone the ability to make medical decisions on your behalf.
Advance medical directives
An advance health care directive gives medical staff and your loved ones guidance about your preferences when it comes to your care, should you become incapacitated. For example, an advance directive might detail whether you want palliative care, to become an organ donor and so on.
You may decide to supplement your estate plan later using trusts or other elements. However, having these components put together should go a long way in terms of putting your mind at ease.