Estate planning is much more than just drafting a will or a trust. A real estate property is a precious belonging for you and your loved ones that provides financial support during uncertain events. Additionally, real estate property can also be used to earn side incomes such as house rent. Therefore, when planning for your real estate investments, you should consider vital factors involved in the planning process.
If you are looking for ways to plan your estate planning in South Carolina, we are here to help.
In this article, we have listed some common components of estate planning that can help you get the most out of your purchase. So, without wasting any time, here are the top five vital components of estate planning.
1. Will and trust
Most first-time buyers have misconceptions that will and trust are only needed for wealthy people or luxury properties. Will and trust are the most crucial part of real estate properties. Will allows an individual to direct or dictate the ways their property and assets can be handled after their death or during uncertain events. If you want to secure your property or loved ones’ rights and interests, it is important to prepare a will beforehand.
2. Durable power of attorney
A durable power of attorney is a person having the power or ability to make legal decisions regarding an individual’s estate. Usually, power of attorney is beneficial to owners with serious health issues or who are mentally unstable to take decisions. Additionally, if the owner becomes mentally incompetent and doesn’t have the power of attorney, the court will take over the property and make decisions regarding the further distribution and management of individuals’ assets.
3. Healthcare power of attorney
Healthcare power of attorney, also known as a medical attorney, is similar to the durable power of attorney. A medical power of attorney is a person authorized to make decisions about the medical care facility of the owner. Having a will is not enough to direct someone as the healthcare power of attorney of your property. You must make a separate document stating the person you would like to be your healthcare power of attorney in the future.
4. Beneficiary designation
The beneficiary designation is the benefits given to people who can take over the assets or property of an individual after a period or post their death. You can write the name of individuals you wish to pass a specific portion of your assets without a need to go through the estate. To avoid potential conflicts or disputes, match your beneficiary designation names with your insurance policy documents.
5. Letter of intent
A letter of intent is usually made for the executor or beneficiary to inform them about your wish post your death or incapacitation. Some letter of intent is made to specify funeral details or other special requests made by the owner.
It is always a good decision to seek help from legal professionals or attorneys when creating any of the components mentioned above. Lawyers can help you find the best solution and avoid legal issues post-death.