Creating an estate plan may make it easier to manage your affairs while alive and after you pass. For instance, you can create a trust to ensure that assets remain outside of your Indiana estate for tax purposes. Wills, medical directives and financial agents may also allow you to ensure that your wishes are respected at all times.
You’ll likely need multiple plan documents
A will or trust will serve as the foundation of your estate plan as it plays a significant role in determining what happens to your property if you die or become incapacitated. Instructions contained within a medical directive serve as your voice in the event that you aren’t able to communicate with doctors or other medical staff. A medical or financial agent can also act on your behalf in the event that you become incapacitated.
Many people will have a role in executing your plan
Your estate administration needs will depend largely on whether you opt for a will or trust. If you choose a will, you’ll need someone to represent your estate during probate. During your lifetime, you can oversee a trust and appoint someone to manage it after you pass. Finally, you’ll need to consider who your beneficiaries will be and who would serve as your medical or financial agent if you need one.
A comprehensive estate plan may allow you to distribute your estate without causing conflicts between family members. It may also allow you to reduce the value of your estate for tax purposes, which means that beneficiaries may get a larger inheritance. It’s generally a good idea to review estate plan documents after major life events or at least once every 12 months. Doing so ensures that they still meet your needs and conform to state law.
