At Lauren Richardson Law, PLLC, one of our very own employees graduated from college this past weekend. With school officially over, it’s time to begin to think about estate planning and how to properly manage your assets. Usually graduates are overly focused with attaining employment and making money quickly instead of taking a step back and developing an effective estate plan. Estate planning is meant to ease future burdens and reduce stress. Here are some estate-planning recommendations for postgraduates.
Create a durable power of attorneywith advanced healthcare directives: A durable POA gives you the opportunity to choose who will be able to make financial decisions on your behalf and follow your wishes. An advance healthcare directive identifies the proper steps to be taken if you can no longer make your own health decisions due to incapacitation or disablement. It is ultimately used to acknowledge your wishes and prevent unwanted medical treatment. These documents must be clear and properly written while also meeting all the legal requirements. A durable power of attorney should also be created for financial reasons as well. This document allows you to designate an agent to manage your property, finances or other assets in the case of incapacitation
Draft a living will: A living will specifies to medical professionals as well as your family members what end-of-life (EOL) treatments you want to receive and under what conditions you want to receive them.
Draft a will: For a will, assets that aren’t transferred by ownership, beneficiary designation, or trust are distributed according to the terms of a will. If you don’t have a will, assets transfer according to the laws of the state you are a resident of.
Designate beneficiaries: Assets pass to the individuals designated as beneficiaries on certain contracts or accounts, such as life insurance policies, 401(k) plans and IRAs.
Obtainlife insurance: The proceeds can be used to pay off student loans and other debts.