The importance of writing a will to ensure the distribution of assets is done according to a person's wishes has been stressed repeatedly on this blog. If a person has created a will, his or her estate planning is further ahead than that of many other Americans.
With a will, Texas residents and other Americans can ensure that all assets in their own name will be distributed in the manner they desire. However, even though their wishes have been codified, they still need to continue to work on their estate plan to ensure they have covered all their bases.
For example, wills do not include assets that already have named beneficiaries. For example, when a life insurance policy has a beneficiary, the benefits will go to the beneficiary and not to anyone named in a will.
Also, at times, elderly parents may list one of their children on a bank account. This may be done so that the child can help them stay on top of their bills. In such a situation, if a will instructs the decedent's assets to be divided equally among all children, this bank account would not be included. This is because the bank account is co-owned.
Along with a will, a person should also consider a power of attorney. Oftentimes, individuals do not understand the difference between an executor of a will and someone with power of attorney. The executor will take care of things when a person passes away. However, what happens if a person becomes mentally or physically incapacitated? A power of attorney may assist in this situation. It allows a person to make financial decisions on behalf of a patient. This decision should not be taken lightly, as selecting the wrong person may have serious repercussions.
Lastly, a health care proxy is another document individuals should consider. Through a health care proxy, a person can hand over their medical decisions to someone they trust, in case he or she is unable to speak.
Drafting these important legal documents can help to protect a person's assets and wishes. Texas residents and others throughout the country should try to prepare for every eventuality and consider consulting an experienced attorney for proper estate planning.
Source: NY1.com, "A Will Is Not Always The Final Word," Tara Lynn Wagner, Sept. 27, 2012
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