Not everyone has large amounts of wealth that they need a complex estate plan to take care of. In some cases, all you need is a simple one.
You need three main documents:
1. A will
Even if you do not own much, you’d probably still prefer to decide who gets the things you do own. When you do not make a will or have an alternative in place, a court will decide how to distribute your estate based on state law.
2. An advanced health care directive
You can’t guarantee that you won’t fall seriously ill at some point. If the thought of doctors keeping your body alive when your mind has gone appalls you, you can specify you do not want that to happen. In fact, you can specify a wide range of treatments you don’t want as well as those you do. Or you can just name someone else to make those kinds of decisions for you if the need arises and you cannot make your wishes clear.
3. A power of attorney
If you take a serious bang to the head in a car crash next week, you could be in a temporary coma. You need to give someone the power to do things such as pay the mortgage or sign documents on your behalf if you are unable. It keeps things running as smoothly as possible for you and your family.
With those three documents in place, you will have created an estate plan that covers the most important things. You can alter it whenever you like, but the crucial thing is to have something in place to start with.