Estate planning is one of the most important things you can do for yourself and your loved ones. But what does it mean? What are the essential elements to a complete estate plan? Watch this video to find out! I'm attorney Joseph Stead, and in this video, I'm going to discuss the three essential elements of any complete estate plan.

An estate plan is a set of documents that outline your wishes for your property and healthcare in the event of your incapacity or death. The first element is a Power of Attorney – this document allows you to designate one or multiple individuals you trust to handle legal decisions for you if you’re unable to do so. Your Power of Attorney can be very specific or broad in scope, but generally includes powers to pay bills, buy or sell property, contact and work with financial institutions, and even amend your estate planning documents.

The second key element to a well-crafted estate plan is your Advance Healthcare Directive. This document outlines your medical preferences and allows a designated person to make critical healthcare decisions on your behalf if you are incapacitated. This can include anything from decisions on life support, organ donations, blood treatments… or the decision for surgical intervention.

Now, a little caveat to the Power of Attorney and Advance Healthcare Directive – these documents are only effective while you are alive. They are designed to allow another person the right to make decisions for you if you are incapacitated, but only while you are living. Once you pass away, neither of these documents are valid.

Instead, this brings us to the third essential component to every complete estate plan – the Last Will & Testament. Once you pass away, your Power of Attorney and Advanced Healthcare Directive will be void and your Will becomes the controlling document. Your Will enables you to designate how your assets should be distributed after your death and who should oversee the process of administering your estate. It may also address critical post-death concerns, such as caring for a minor child, charitable donations, or even caring for a pet.

To recap, the three essential components to every estate plan is a Power of Attorney, an Advance Healthcare Directive, and a Last Will & Testament. You should have these three documents at a minimum in your estate plan. Beyond that, there are other advanced estate planning techniques, such as the use of a living revocable trust, that are available to you. I’ll address trusts in subsequent videos. Until then, if you have any questions about the estate planning process, do not hesitate to contact Stead & Associates today. Follow the link in our bio, follow us on Instagram at @Stead_Associates, or head over to our website at www.steadpllc.com.

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