Whether you're running a business, raising young children, or looking forward to retiring from your job, you should start estate planning when you are about 40 years old. Handling this preparation early allows you to change aspects as needed so that your affairs are in order. If you are planning to start this process, below are several legal tools to include in the plan.

3 Documents You Need When Estate Planning

1. Last Will

A will allows you to control the distribution of your assets and provide for loved ones and institutions you support when you pass away. For example, if you are responsible for disabled adults or minor children, you can designate guardians and provide finances for these individuals. You and your spouse should make separate wills because joint wills require both spouses to agree on any changes. Without this document, the probate laws in your state will decide who receives assets from the estate.

2. Power of Attorney

A power of attorney is an estate planning document that allows you to designate someone you trust to take actions on your behalf. You can give the agent or attorney-in-fact broad or limited authority and change or revoke the document while you are mentally capable. For example, if you create a durable power of attorney, you give the agent the authority to handle business, personal, or financial matters if you become mentally or physically unable to tend to the matters. In Nebraska, you can even include a health care power of attorney in a durable power of attorney. 

3. Digital Asset Trust

With the prevalence of social media, computers, digitized documents, and online banking, you should create a trust to handle these electronic assets during the estate planning process. Also, if you deal in bitcoin, use a digital fund transfer system, or run a website, make sure you give someone the passwords to these accounts so that they can access them when you pass away. To do this, create a list of your log-in information to different websites and keep this separate from your will. Then, name a trustee to liquidate or manage these accounts.

If you need help navigating the estate planning process, contact The Law Offices of Bromm, Lindahl, Freeman-Caddy & Lausterer in Wahoo, NE. Since 1893, this firm has been helping people draft wills, trusts, and other essential documents. They stay up-to-date on probate, real estate, and business laws to help you take a comprehensive approach to your financial future. For more information about their practice, visit them online. Call (402) 443-3225 to schedule a consultation.