Minnesota Legal Blog

3 components a basic estate plan should include

On Behalf of | Aug 1, 2023 | Estate Planning |

Having a Minnesota estate plan helps you maintain control over many elements of your life, including certain personal, medical and financial affairs. However, many people neglect to create estate plans, and they feel they lack the time or do not have enough assets to make estate planning worthwhile. In truth, though, everyone, regardless of income or asset level, benefits from putting together an estate plan, and a plan does not have to be lengthy or extensive to be effective.

On the contrary, Bankrate recommends drafting an estate plan that includes three primary elements: a will, a power of attorney and an advance medical directive.

1. The will

Drafting a will lets you dictate where you want your assets to go so that the responsibility of distributing them does not fall on the state of Minnesota. A will saves your loved ones time, money and stress, and it also gives you an opportunity to designate a guardian if you have any minor children.

2. The power of attorney

When you give someone power of attorney, you are allowing him or her to manage certain financial affairs on your behalf.  Minnesota recognizes a general power of attorney, which gives someone the ability to manage all your affairs. It also recognizes a limited power of attorney, which gives the individual you appoint powers in specific areas.

3. The advance medical directive

In Minnesota, a health care directive combines two types of documents: the living will and the durable power of attorney for health care. Both types let you voice your preferences with regard to health care, should you suffer incapacitation and become unable to do so otherwise.

Having these three components in your estate plan helps save your loved ones time, money and stress while giving you peace of mind in the event that the unthinkable occurs.