It’s not uncommon for people in Arkansas to have missing elements from their estate plan – or no estate plan at all. However, dying without an estate plan can cause a high level of stress while costing your loved ones their time and money. Whether you have an estate plan or are starting to think about creating one, these are four things that no estate plan should be without.
Wills
Most people already know that a will is one of the most essential components in an estate plan, but is yours up to date? You may have written a will years ago, and it’s easy to forget exactly what you specified at the time it was written. It’s always a good idea to review your will along with the rest of your plan every few years or after a major life event. Your circumstances and assets can change a lot over time, so don’t hesitate to look over your will and make changes as necessary. Remember that your will must meet the criteria of Arkansas law in order to be considered valid.
Trusts
There are several different types of trusts that can fit into an estate plan, and it’s essential that you review your plan with an estate planning expert to be sure that you utilize trusts in the most impactful way. For example, if you want to reduce taxes on a charitable contribution, you might consider a charitable trust to protect your assets. Other types of trusts, called revocable trusts, allow you to maintain control over your assets during your life, which are then passed on without going through probate after your death. Discuss your wishes with an expert to be sure that you’re using different trusts to your advantage.
POAs
For some, the thought of assigning a power of attorney (POA) is intimidating. They’re worried about giving up too much control over their lives, but that’s not the role of a POA in estate planning terms. The reality of assigning a POA is designating someone you trust to take over your finances or healthcare decisions if you’re no longer able to while still alive. That keeps you in control and your loved ones taken care of if you become incapacitated for any reason. Naming a POA isn’t necessary for every estate plan, but it’s something to consider.
Beneficiaries
You may have named beneficiaries on certain accounts, trusts, or your will, but are those beneficiaries still up to date? To be sure that your assets are distributed the way you want them to be, you should regularly review your beneficiary designations, including when a loved one is born or passes away, after a marriage or divorce, and when your life circumstances change.
Review Your Estate Plan Today
Everyone needs a comprehensive estate plan, and an estate planning attorney can help you review your plan to ensure that nothing is missing. Remember: estate plans aren’t just for the elderly or wealthy. Contact the L. Jennings Law Firm today to update or begin planning your estate with a member of our Arkansas-based law team.
