When creating your estate plan, one of the most crucial things to focus on are your key figures. These are the people who will either help you during your end-of-life process, or will benefit from your estate after your death.
As key figures often change, it is crucial to understand what role they play in your estate. It is just as important to update your estate plan when necessary to account for key figure changes.
Beneficiaries
Forbes discusses potential key figures in your estate plan. This includes beneficiaries and individuals who will help you in your end-of-life stages. Beneficiaries are the people who will benefit from your estate after your death. For example, you may have them listed as beneficiaries for an inheritance. Someone might get your house or vehicles, another may get precious heirlooms.
This also goes for the people you put on your trust and any bank accounts. This can include retirement funds, savings accounts and more. Do not forget to factor in insurance policies, too. You do not want someone benefiting from your death if you are no longer close.
People who help in end-of-life stages
Other key figures will help later in life. This may include a power of attorney and a healthcare proxy. Healthcare proxies are crucial, as they act in your stead if you become incapacitated and have a medical emergency. They will make the important calls in your place, so you want to make sure they understand your wants and needs perfectly. A power of attorney handles your legal and financial situations in the same way.
Key figures change often. In fact, it is the most fluid part of most estate plans. Thus, you should put a decent amount of focus on it.