When it comes to estate planning, its never too soon to have all your ducks in a row.
After all, estate planning is not just about death and taxes. It also deals with what happens if you get sick.
There are four critical estate planning documents everyone needs, says an article in the Wall Street Journal.
1) A will
A will is the best way to have your wishes fulfilled and it avoids leaving anything up to the courts. Your will should dictate where everything goes and name an executor to manage it. You should also talk to family members to find out if there are heirlooms that they want. Also, avoid using an online will resource. An estate planning attorney is the safest way to go.
2) Power of Attorney
It can give someone else the authority to act as your agent and to make legal and financial decisions should you become incapacitated. The person should not just be a devoted friend, but also someone who can manage money. And always name a backup.
3) Medical Power of Attorney
This document, also known as a health care proxy, enables someone you designate to make medical decisions on your behalf should you become incapacitated.
4) A Living Will
Also known as an advanced health care directive, this document spells out your wishes for end of life care. And let people know information about your doctors and medications.
