It takes expertise to be a builder, but it also takes the right tools. The wrong implements and materials mean trouble for a home, sooner or later. In the same way, estate planners have to make sure that the right financial instruments are part of their strategy to pass money and property to others.
The first and most basic part of an estate plan is the last will and testament. This document states the intentions of a person on what can happen to their assets upon their death. A will can clear up confusion on who gets what as well as legally certify instructions for future generations.
Some other documents may matter, such as a durable power of attorney to give another person the right to make medical decisions in the case of a person’s incapacitation. A prenuptial agreement, if it exists, may also warrant consideration in an estate plan.
Organizations or businesses that a person owns may require a succession plan or other documentation on how best to proceed after a founder’s or owner’s death. Some assets may avoid an estate plan altogether with a payable-on-death account, which automatically reverts contents to a survivor once the creator passes away.
Very few people try to build a house or a shop entirely on their own, even if they have expertise in all the different disciplines. Likewise, it often takes help to create a complete estate plan. One of the best team members for estate planning is an attorney. Legal representation may help simplify or avoid probate for certain assets as well as create the best strategy for inheritance.