Estate plans can contain many different documents that address a variety of concerns and responsibilities. While many wealthy South Carolina residents explore the idea, having substantial assets is not a prerequisite. Net worth may not play a factor and a better understanding of what real estate planning involves could reveal why.
Last wills and testaments and responsibilities
When involved with estate planning, a testator could draw up a will to leave assets to beneficiaries. No matter how much or how little comprises the estate, the state’s intestate laws determine who receives what property when there is no will. A person who has a small amount of savings and owns a car or home might want to make sure the preferred beneficiary receives the items.
Several responsibilities remain even when someone passes away. An executor could handle paying debts or informing creditors of insolvency. Filing taxes becomes another concern, and a will could name an executor preferred to handle the task.
Other facets of estate planning
Estate planning steps could involve far more than writing a will. Many components of estate planning deal with responsibilities while someone is alive. Plans could entail designating power of attorney to an agent trusted with handling someone’s financial affairs.
Financial matters aren’t the only ones that estate planning involves. Health care decisions may become necessary when someone becomes incapacitated. A living will may detail someone’s intentions in advance. A health care proxy designates another person to make the decisions. Without these documents, things could become far more difficult for relatives if someone suffers an unexpected medical emergency.