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What 3 elements does a simple estate plan need?

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

Many people in Tennessee put off creating estate plans until it is too late. Yet, neglecting to create an estate may cost your loved ones time and money and cause them unnecessary hardship. Contrary to popular belief, estate plans do not have to be difficult to create or complex in nature to help you accomplish your most urgent estate planning goals.

According to Bankrate, creating an estate plan may also help reduce the amount of time your estate spends in probate, which may help your beneficiaries gain access to what you leave them much faster. What elements does a basic estate plan typically need?

A will

If you do nothing else for your estate plan, include a will in it. When you draft a will, you get a say in where your assets end up after your death. Many Tennessee residents also name guardians for their minor children when they draft their wills.

A power of attorney

Different types of powers of attorney serve different purposes. A financial power of attorney gives someone the power to manage your financial affairs, while a medical power of attorney gives someone decision-making power when it comes to your medical care.

An advance directive

While a medical power of attorney is one type of advance health care directive, other types also exist and serve a variety of purposes. For example, a living will enables you to outline your medical preferences before you suffer incapacitation so that doctors and your loved ones have something to reference.

Creating an estate plan that contains these three elements helps you maintain power over your financial, medical and personal affairs.