Determining the future of an estate can be very hectic, especially if there are external factors beyond the control of the family or custodian. There are, however, essential documents that can help speed up the process and make it less disconcerting for all parties involved. In particular, there are three documents that should be considered: the will, the personal directive and the power of attorney.
By far, the will is the most important document when handling assets after a person’s death. It spells out in detail what happens to the estate after the decedent has passed away. The will should indicate all of the beneficiaries of the estate, and the executor who is responsible for organizing the matter. Guardians may be appointed for any minor children left without proper parental authority.
In case of physical or mental incapacity, the personal directive can be very useful in order for the will author to have somebody take care of him. Thus, the estate can be left in good hands even while the person concerned is still alive. The power of attorney can also be enacted during this time, but the person authorized with this power will handle all financial matters.
There are other important documents that should be prepared beforehand, like insurance papers and retirement plans, but these won’t matter if the above three aren’t settled first. A well-planned estate turnover can mean the difference between years of ambiguity and only a few months of hassle.
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