How estate planning can help you protect your legacy

livemint.com:

₹1.5 trillion are lying scattered across the country because families are not aware of them. Of this, ₹35,000 crore comprises unclaimed deposits of investors relating to 102.4 million accounts, which was transferred to the Depositors Education and Awareness Fund. By writing a will and keeping it updated, one can keep their legacy secure and provide for future generations in their family line.

There are several essential components of estate planning that everyone should consider. Will: A will is a legal document that lays out how you want your assets to be divided after you pass away. It’s your chance to specify who should receive what, appoint guardians for your kids and choose someone trusted to handle the distribution of your estate.

Trusts: Trusts are legal entities that hold assets on behalf of beneficiaries. They can be pretty handy in avoiding probate, minimizing estate taxes and ensuring ongoing care for your loved ones. There are different types of trusts to consider, such as revocable trusts, irrevocable trusts and special needs trusts.

Each comes with its own needs, objectives and special purpose requirements. Power of attorney: A power of attorney is a legal document that gives someone else the power to make financial or medical decisions on your behalf if you’re unable to do so. It’s super important to choose someone you trust to act as your power of attorney, ensuring that your affairs are handled the way you want them to be.

Healthcare directive: You might also hear this referred to as a living will or advance directive. This document lets you express your preferences for medical treatment in case you’re unable to communicate your wishes. You can spell out the kind of care you want or don’t want, including