Making The Deal Count

3 Must-Have Estate Planning Tools Investors Should Not Forego

25 August 2022

Trix Van Zee

Acknowledging the uncertainties of life is the first step toward planning for your future because it incentivizes you to be prepared for any eventualities. Recognizing that mortality is the truth of life ensures that the efforts you put toward giving your family financial freedom don't go down the drain.  

Estate planning is an important investment in this respect because it helps ensure that your legacy lives on through your beneficiaries. But what exactly is estate planning? If you haven't done any estate planning yet, now is the time to start. Here are three essential tools that every investor should not forego. 

A Will  

The most important estate planning tool is a will because it's a document that clearly stipulates how you want your wealth distributed upon your passing. For most people, it might seem like the most basic estate planning tool, but in reality, it's quite essential. Anything that gives your loved ones clear instructions on what to do with your property should be treated with the seriousness it deserves because it prevents family disputes. 

You've also got to remember that without a will, your assets will be divided up according to state law, which might not be in line with your wishes. The court would choose a representative who you don't have a prior working relationship with. However, if you hire an estate planner, they'll take care of writing, updating, and executing your will as per your guidelines. 

A Living Trust 

Another tool you shouldn't forego when putting your assets in order is a living trust as it allows you to assign power of attorney to a legal and financial advisor you trust. This way, should you be incapacitated, they can act in your best interest and that of your beneficiaries. For instance, if you have underage children, a living trust would ensure that, if you pass, your offspring don't have access to their inheritance until they have learned financial responsibility. 

Health Care Proxy 

Yet another estate planning tool you shouldn't forego is a health care proxy as it allows you to delegate a trusted individual to make medical decisions on your behalf in the event of your ineligibility. For example, if you do not wish to be resuscitated, your health care proxy will give the designated decision maker the power to speak in the hospital. 

Hopefully, this article has shed much-needed light on estate planning. If so, you can proceed to hire an estate planner with confidence, knowing how you can benefit from organizing your affairs. 

Contact a local estate planning service to learn more. 

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