As you get older or once you have kids, you begin to think about your legacy and how you want to leave things in the event of your passing. Creating an estate plan is essential when working to plan for the future, but what elements should be included in a standard estate plan? In today’s blog, we cover some of the elements that should be included in your estate plan, and we explain why securing title insurance should be one of those important elements.
Developing A Comprehensive Estate Plan
An estate plan is an assortment of legal documents that outlines your wishes for assets and healthcare decisions. In the event that you become medically incapacitated or upon your death, these documents will ensure matters are carried out in accordance with your desires. But what types of documents should be included in an estate plan?
- Last Will and Testament - A last will and testament will name your assets and explain who will inherit them upon your passing. A will may also lay out who will become guardian of children in the event of your passing. It will also name an executor to help carry out the terms of your will.
- Account Beneficiaries - An estate plan will also document the beneficiaries of all non-probate assets, like a 401(k), your pension or a life insurance policy.
- Advanced Healthcare Directives - You should also describe your medical preferences and designate a medical power of attorney if you can no longer make decisions of sound mind.
- Revocable Living Trust - A revocable living trust will name a successor trustee to manage your personal property, to transfer it to a trust or to otherwise dictate which people or groups will receive each asset.
- Financial Power of Attorney - Some people also opt to name a financial power of attorney in the event that you can no longer make financial decisions of sound mind.
- Identification Documents - An estate plan can also include documents relevant to your identity and marriage, like ID cards, birth certificates, social security cards, martial documents and prenuptial agreements.
- Insurance Policy Documents - Provide your estate planner with a copy of your life, health, car, title and home insurance policies.
- Logins - Many people like to provide account and login information for financial accounts, social media pages, email and other digital files in an estate plan.
While you’re getting your estate plan in order, it’s also wise to consider securing a title insurance policy for your commercial assets in the event that you do not have a policy in place. This title insurance policy provides you and your heirs with financial protection in the event of a valid or invalid claim on your title. Title issues more commonly arise following the passing of a title holder, as this is when records will be analyzed and updated. Securing a policy ensures your family doesn’t have to jump through a bunch of hoops in the event that someone challenges the validity of the title upon your passing.
We’ve helped countless clients secure a title insurance policy to protect their commercial assets now and in the future, and we can do the same for you. For more information about how a title services team can assist with the estate planning process, connect with the team at Commercial Partners today at (612) 337-2470.