What Documents Should Be Included in a Complete Estate Plan?

A complete estate plan needs a set of core legal documents, and some plans will need additional documents specific to that estate’s unique makeup. Your El Paso estate planning lawyer will help you put together all the required documents, like your will and powers of attorney, and advise you on what else is wise for your situation.

Documents in a Complete Estate Plan

Last Will and Testament

This is the foundational document and arguably the most important, as it specifies how your assets should be distributed and names an executor to manage that process. Your executor needs to be someone you can trust and who has the financial acumen and objectivity to do it well. Your will can also appoint guardians for your minor children, if you have any.

If you don’t have at least a will, Texas state intestacy laws will decide who gets what, and that may not be in accordance with your wishes.

Durable Financial Power of Attorney (POA)

This document appoints someone to handle your financial affairs if you become unable to do so. You can give them broad powers to manage your finances or limit them to specific tasks, like paying the bills and managing your investments.

The term “durable” means that their power remains effective if you become incapacitated and the court doesn’t have to intervene. This person’s power to handle your finances ends if you pass away, as the estate then goes into probate to be handled by the executor.

Advance Healthcare Directive (or Living Will + Healthcare Power of Attorney/Proxy)  

Your healthcare Power of Attorney names an agent to make medical decisions for you if you’re incapacitated. Your will should also state your preferences for end-of-life care, but it’s still wise to have a medical POA. While a directive is essential, it’s very difficult to speak in advance to every possible situation that could arise. Your POA is there to make decisions where your directives are unclear or might not apply to the situation.

Other Important Documents

Not every estate will need the following documents, but many will, and particularly larger estates:

Revocable Living Trust 

This is a trust that holds assets during your lifetime (you can control them during this time) and then distributes them after your death. The assets in this trust go around probate. This means your loved ones can benefit from those assets immediately, and probate costs are avoided.

Beneficiary Designations

These documents can specify where certain accounts, like life insurance or retirement plans, are distributed, provided those accounts are set up the right way. These designations transfer the assets to the beneficiary directly, without probate.

Letter of Intent

This isn’t a binding document, but it’s a way for you to express your wishes about your funeral or memorial, give personal messages, or offer guidance for how you want the executor to deal with distributing your assets (particularly with items of sentimental rather than financial value).

Talk to an El Paso Estate Planning Lawyer

Get peace of mind that your estate plan has everything it needs to keep your assets safe and protect your loved ones. Contact Townsend Allala Coulter & Kludt in El Paso, TX to get started.

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