Estate planning is not only for wealthy families or people nearing retirement. For many Tennessee families, it starts with a simpler question: If something happened tomorrow, would the people we love know what to do?
A good estate plan can answer that question before a crisis forces a family to make difficult decisions. The right documents can give a family a clear plan.
Here are key documents Tennessee families should consider:
1. A will to direct where your property goes
A will lets you name the people who should receive your property after your death. You can also use it to name a guardian for minor children and an executor to handle your estate.
Without a valid will, Tennessee’s intestacy laws determine how certain property passes. Those rules may not match what you would have chosen for your family.
2. A revocable living trust to manage and transfer assets
A revocable living trust can hold assets during your lifetime and provide instructions for managing and distributing them after death. It may also help some families avoid probate for assets properly placed in the trust.
Whether a trust fits your Tennessee family depends on your assets, family structure and estate planning goals.
3. A financial power of attorney to handle money matters
A financial power of attorney allows you to name someone to manage financial matters if an illness, injury or other circumstance leaves you unable to handle them yourself. That person may need to pay bills, manage accounts or handle other financial responsibilities on your behalf.
Choose someone you trust because this person may have significant authority over your finances.
4. An advance directive to guide health care decisions
An advance directive lets you state your wishes about medical treatment and appoint someone to make health care decisions when you cannot communicate. Tennessee also recognizes other documents that can help families address health care decisions.
These documents can spare loved ones from guessing about your wishes during an already stressful time.
5. Beneficiary designations and property records to keep your plan aligned
Your estate plan should account for more than your will. Review beneficiary designations on retirement accounts, life insurance policies and other accounts. Keep deeds, account information and other important records organized, too.
Together, these steps can help your family understand what you own, who should receive it and who can act on your behalf.
A plan your family can rely on
A complete estate plan connects these documents with your family’s needs, assets and goals. Reviewing the plan after major life changes can also help keep it current.
Because estate planning decisions can affect property, finances and family members in different ways, legal guidance can help you understand the consequences of each choice before you put your plan in place.