A leading financial management company by the name of HCR Wealth Advisors emphasizes the importance of estate planning. The company actually noted that many people steer clear from estate planning because many people believe it is akin to planning for your death. It is seen as a topic to shy away from because no one wants to think of their own demise. However, HCR Wealth Advisors says that this topic should be bravely faced head-on because most people should protect their assets and their loved ones should something untoward happen.
Estate planning is just like insurance wherein you plan for the inevitable. Just as its name suggests, estate planning is planning out how your assets, like your property, jewelry, etc, will be distributed to your heirs should you die or become permanently incapacitated.
HCR Wealth Advisors has been an industry leader in financial management, helping clients prepare for unexpected situations by coming up with concrete strategies for wealth management, so people can properly address issues as they arise. Estate planning is one of their programs, and HCR Wealth Advisors believes it is beneficial because planning ahead ensures your assets do not get held up in probate court, which costs more money. Most importantly, estate planning can help to ensure that your heirs won’t get hit by heavy estate taxes.
Estate planning is very easy with only four documents necessary to get the ball rolling. The first is the will, which states specifically how your assets shall be distributed to the heirs. If the heirs are minor, a legal guardian shall be appointed. In the will, an estate representative shall also be identified, because he or she shall make sure the will is executed. The second document is a durable power of attorney for finance. This is usually granted to the spouse because he or she will be granted the authority to make all kinds of financial decisions should you become incapacitated. The third document is an advance care directive or what many people know as a living will. This works in conjunction with the fourth document, which is the durable power of attorney for healthcare. The purpose of these two documents is to carry out your last wishes regarding medical treatment on your last final moments in the world. It contains details about life support and organ donation, and these directives shall be respected and executed down to the last letter.
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