Estate Planning in a Nutshell

A will is the expression of the person's wishes concerning how their property is to be distributed. It is a written statement, signed in compliance with the various formalities covered by legislation. It is a legal document containing the names of the people you want to benefit, as well as details of your possessions at the date of your death. The people you want to benefit are called beneficiaries.

Basically, for a Will, you need to designate an executor or an executrix. An executor is a person who will manage the Will once a person passes. You should provide an alternate, also, in case that person is unable to serve as an executor. Usually, people choose a close family member who is around locally. If there are no family members situated locally, please choose someone that you ultimately trust.

Now, your Will should contemplate how you wish your assets to be distributed should something happen to you. If you choose minors as beneficiaries, you will need to create a trust, because a minor is not able to receive proceeds on their own.

A Living Will and healthcare proxy are also vital to your entire package. A Living Will takes effect when you either are in a irreversible coma or have a terminal illness. This document allows you to grant specific wishes as to how your health issues should be handled.

The health care proxy allows you to nominate a person who will act on your behalf with regards to your medical needs. You do not need to be terminally ill or in an irreversible coma in order for this health care proxy to take effect. The health care proxy, again, is a representative who will make your health care decisions if you are unable to speak or in a temporary unavailable situation.