Estate planning is something that most people do in conjunction with writing a will, but it can be handled separately. It is the process through which you decide how your estate – your money and the things that you own – will be distributed after you pass away.
What Is the Point of an Estate Plan?
An estate plan will simplify your executor’s job by clearly identifying all of the things that you own. By specifying how much money you have and where it is, detailing the property that you own and whether it is owned outright or mortgaged, and specifying what valuable assets you own, you can help your executor to quickly locate and disseminate your estate to those you love.
What Should Be Included in an Estate Plan?
Your estate plan should include all things of value that you own. This should be both financial and emotional value, as ensuring that your pets or sentimental possessions are cared for by the appropriate people after your passing is just as important as making sure that your home passes to the right person.
What About If You Have a Lasting Power of Attorney?
A UK power of attorney means that you nominate someone to manage your finances and healthcare when you are alive but lack the capacity to do so yourself. Estate planning is conducted by your executor after you are deceased. The LPA expires at the point that you pass away, and your estate will then be managed in accordance with your will and your estate plan.
Your attorney will be responsible for managing your finances while you are alive, and you may also wish for them to maintain your estate plan to ensure that it is accurate and up to date when your executor is required to distribute it in the future. You can specify the attorney’s responsibilities when you enact an LPA, using the services of a solicitor such as https://powerofattorneyonline.co.uk.
In Conclusion
Estate planning is the process of identifying what you own so that it can be distributed after your death.