Aside from advance directives designed to ensure health and care wishes, individuals must also take necessary precautions to protect their financial assets. Estate planning is also part of the main tasks involved creating a good retirement plan.
These legal documents include:
- A living trust is a document that places your assets into a trust managed for your benefit during your lifetime. Your assets are then passed onto your beneficiaries when you pass away. Trusts are recommended for those with large or complex financial estates.
- A durable power of attorney allows a person of your choosing to manage your estate when you can no longer make decisions on your own.
Make sure to keep your family and friends informed about your wishes and other details of these documents. Speak with the person you wish to designate to make the decisions on your behalf before you go through with these documents. Make sure that he or she is comfortable with the role you will be assigning him or her.
Lastly, consider seeking the advice of a financial expert regarding these matters.