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Here are the essential components of a smart estate plan

Contrary to popular belief, estate planning is not just for the rich and famous. When it comes to estate planning, the decision on who will inherit your assets when you are gone is an enormous one. With a solid estate plan in place, you will have peace of mind knowing that your future, loved ones, and assets are protected. But what makes a perfect Kentucky estate plan?

Here are the essential components that you need to include in your Kentucky estate plan

1. A living trust

These days, it is not unusual to create a living trust as part of your estate plan. A living trust makes it easier for you to pass on your estate to your desired heirs. And having a living trust in place is a prudent idea because it will help you avoid the lengthy and costly probate process. 

2. A living will

Kentucky 1994 Living Will Directive Act gives you the right to make decisions regarding your medical care, including the right to decline treatment. With a living will, you can decide whether or not you want to donate your organs, designate a healthcare surrogate, or request or decline life-extension treatment. Basically, a living will allow you to issue instructions regarding your healthcare should you become incapacitated.

3. Financial power of attorney

A financial power of attorney allows you to appoint someone else to make financial decisions on your behalf should you become incapacitated. Without a power of attorney, no one can step in and take control of your finances unless they are appointed by the court. 

4. A will

This is a legally binding document that spells out who will receive your assets upon your death. If you do not have one, the state will have to step in to determine how your assets are distributed. A will also names the legal representative who will carry out your wishes. 

Having a well-considered estate plan gives you the peace of mind that your future, assets, and loved ones are protected. However, it is important that you put in place an estate plan that is consistent with Kentucky laws. An experienced estate planning attorney will take you through the estate planning process with the goal of ensuring that there is no room for conflict over your assets when are no longer around.