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Include these 3 components in a simple estate plan

On Behalf of | Jun 7, 2022 | Estate Planning |

Many people across New York do not create estate plans until a major life event, such as a marriage or the birth of a child, prompts them to do so. If you list yourself among them, you may have neglected to create a plan thus far due to worries about the cost or time commitment involved. You would be remiss not to create a basic estate plan, though, because in failing to do so, you relinquish some control over many important areas in your life.

According to Bankrate, an estate plan does not need to be complex or comprehensive to help ensure that your future wishes come to fruition. Instead, many New York residents decide to make estate plans that contain three main components.

1. Wills

Wills give you an opportunity to outline who you want to take ownership of your assets and valuables when you die. You may also choose to name a guardian over your minor child or children when creating your will.

2. Advance directives

Advance directives come in a number of different forms, including the durable power of attorney for health care and the living will.  There are different nuances associated with each, but all advance health care directives give you a chance to dictate your wishes with regard to your own medical treatment and care.

3. Financial powers of attorney

The individual you give financial power of attorney helps wrap up your financial affairs if you become unable to do so yourself. He or she may pay off debts, work with your bank and otherwise tie up any financial loose ends you leave behind.

Creating an estate plan with these three elements goes a long way in terms of helping you maintain control over your personal affairs.