An estate plan is a highly individualized set of documents detailing what will happen to your assets and responsibilities after you pass away or if you are unable to make your own decisions. It ensures your wishes are carried out and your loved ones are provided for.
Estate plan requirements vary by state, but here in Virginia, an effective estate plan should include the following:
1. A Will
A Will outlines how you want your assets to be distributed after death – sort of like a set of instructions for your lawyer, your heirs, and the courts (if necessary). Writing a Will ensures that your assets are distributed according to your wishes, and, with a well-written Will, your heirs will be far less likely to dispute each other over their inheritance.
If you have dependent children, you can also name guardians for them in your Will, giving you peace of mind that they will be taken care of, even if something happens to you.
2. A Power of Attorney
A Power of Attorney is a document that allows you to appoint someone to act on your behalf in financial and legal matters. You can choose someone you trust to make decisions for you when you can’t. This becomes invaluable if you are temporarily incapacitated due to illness or injury, and it is absolutely necessary when planning for your eventual death.
Without a Power of Attorney, the local circuit court appoints a conservator for you, deciding who manages your assets and how they do it. A Power of Attorney puts the power back into your hands.
3. A Health Care Directive
A health care directive (also known as an advance directive) is a document that outlines your wishes about medical treatment. The person you choose to act on your behalf (your “agent”) can make decisions about your medical care and communicate your wishes to healthcare professionals if you can’t communicate them yourself. Healthcare professionals will rely on your agent to speak on your behalf when it comes to your medical care.
If you choose a trustworthy agent—someone who knows your preferences and will carry them out according to your requests—you can know that your wishes will be respected in your most vulnerable moments.
4. A Trust
A Trust is a legal tool that holds your assets for the benefit of another person or entity. In many ways, Trusts work similarly to a Will, but they can be more beneficial because certain types of Trusts can protect and direct your assets while you are still living.
There are several choices when it comes to Trusts. Which one is right for you will depend on your particular circumstances and expectations, as well as the laws of your state (which is why consulting with a knowledgeable, experienced attorney is so important)!
5. Beneficiary Designations
Beneficiary designations determine who will receive your assets, which have names attached to them—life insurance policies, retirement accounts, bank accounts, and some personal property—after your death. You should review and update these designations regularly to make sure they reflect your current intentions.
These designations are designed to dovetail and support your wishes as outlined in your Will or Trust, further ensuring your desires for your assets are respected.
6. Funeral and Burial Instructions
One of the kindest things you can do for your loved ones is to include instructions for your funeral and burial in your estate plan. It helps alleviate the burden of decision-making during a difficult time and helps them celebrate your life without additional stress or worry. Include any paid burial plans or insurance coverage and the location of these records with your other plan documents.
Every good estate plan contains the same components, but each of those pieces should be tailored to your individual needs and goals.
That’s where we come in.
We can work with you to ensure that each piece of the estate plan puzzle is in place just the way you want it.
At Promise Law, we offer a free estate planning workshop so you can be sure you’re leaving behind well-laid plans for your loved ones. And when you attend a workshop, you also get a complimentary one-on-one consultation with an experienced Virginia estate planning attorney.
Contact us at 757-982-2380 to get started, or watch our on-demand workshop today!
