It can be difficult to navigate the murky waters of estate planning by yourself, which is why the team at Womack Investment Advisers, Inc. is here to help.

It’s our top priority help you understand the necessary parts of your estate plan and provide you with options that may benefit your individual circumstances. In this article, you’ll learn what the 5 components of estate planning are.

What are the 5 Components of Estate Planning? 

An estate plan is a legal document that takes steps to ensure your property is taken care of by the people you designate in the ways you want. (1) While a lot of people think that their work is done once they set up an estate plan, it’s important to ensure you have all the necessary components of the plan together, and that you review the plan every few years to ensure it is still up-to-date.

“An estate plan isn’t going to be successful unless the heirs understand the property, your intentions for it, and how to manage it.”

 Forbes.com

1. Will

For many people, the will may be the first thing you think about when putting together an estate plan. This document lays out your desires for who will take what assets after your passing. It should also state desires for who will take care of any young children or pets you have in your care.

2. Trust

As a lesser-known document, this provides the legal backbone for your will. A trust designates how your beneficiary (or beneficiaries) should handle your assets once they receive it through your will. There are multiple types of trusts that can affect the taxes placed on these assets.

3. Power of Attorney

If you were to become incapacitated, a power of attorney grants someone permission to make decisions on your behalf. When assigning someone power of attorney, you should be confident that they will try to act in your best interest. You can assign medical, legal, or financial power of attorney to the same or different individuals.

4. Health Care Directives

While decisions about your health are handled by the individual who has medical power of attorney, you can set certain health care directives that act as a “medical will” in the event you are incapacitated.

5. Beneficiary Designations

These designations are typically outlined in life insurance policies and on retirement accounts, and designate who receives funds and payouts in the event of your passing. 

Here to Help: Womack Investment Advisers, Inc. (WIA)

At Womack Advisers, our team can help you plan for the future. As a family-owned firm based in Edmond OK, we take care to work directly with you like a member of our own family.

Having helped individuals in Edmond and surrounding regions for over 30 years, our team is experienced in all types of financial and investment planning, including estate planning.

Ready to take the next step to ensuring your property and assets are well cared for? Get in touch with our professional advisers today.

References:

1.     Forbes.com, 7 Steps to Ensure a Successful Estate Plan, https://www.forbes.com/sites/bobcarlson/2021/05/27/7-steps-to-ensure-a-successful-estate-plan/?sh=465c74dc4a79

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