4 Must-Have Documents for a Peaceful Retirement
Most people can't wait for retirement, and even more would likely opt for some form of early retirement if they had the opportunity. Whenever you ultimately decide to cut down your time at work or leave the workforce altogether, you need to ensure that you have a full slate of estate planning documents in place. These documents exist in the event of your untimely demise or incapacitation, at which time your family will need explicit instruction as to how to proceed. Here, we'll discuss the four key documents in constructing an effective estate plan.
In the event you become incapacitated or become incapable of making financial decisions, a durable POA will allow someone you trust to sign documents and manage your affairs. This is a simple document that can be filled out online, but if your situation is in any way more complex than the norm, it's advisable to have an estate planning attorney look over your POA before it's executed. You can give someone a limited POA that limits their authority to specific transactions, and you can also devise a springing POA, which takes effect at the time of your incapacitation. Generally speaking, I recommend a durable POA that covers all transactions and takes effect immediately, so you know you will have a trusted ally available to handle your affairs regardless of what lies ahead.
Most people know what a Will is, but only between a third and a half of Americans actually have one. While it is most certainly difficult to contemplate your own mortality, it can be just as painful to think of leaving a mess for your heirs if you are no longer here. A Will appoints an executor -- one or more people who will manage your affairs in a fiduciary manner -- and outlines a plan for the distribution of your property. Furthermore, a Will provides an opportunity to create testamentary trusts, or entities that will hold property for your descendants and other heirs.
Source Fool.com
