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Include these 3 components in a simple estate plan

On Behalf of | Nov 23, 2021 | Estate Planning |

When you die in Tennessee without an estate plan, you may leave many things to chance. Having an estate plan allows you to have a say in where your assets go and what happens to you medically if you become unable to make these decisions in the future. Also, contrary to what you may think, an estate plan does not have to be highly detailed or expensive to help you accomplish some of the most important estate planning objectives.

According to Bankrate, three things you might want to consider including in a simple estate plan are as follows.

A will

If you do nothing else as far as estate planning, do create a will. A will lets you dictate who you want to gain possession of your assets, rather than leaving this decision up to the state.

A financial power of attorney

You may still have bills to pay and loose ends to tie up when you die. Giving someone financial power of attorney allows that individual to access your bank accounts and other financial affairs and pay your debts as needed. This helps ensure your beneficiaries do not lose more of your estate to interest or fees.

A health care directive

Health care directives give you an opportunity to say what your wishes are when it comes to your own medical care. There are different types of advance medical directives. Typically, most only come into play if you suffer incapacitation.

A will, a financial power of attorney and an advance directive are all important elements in an estate plan.  However, you may also want to consider other estate planning tools, such as trusts, to accomplish your various goals.