People often think about estate planning in terms of the legacy they will leave after they’re
gone. While that’s an important part of estate planning, it’s also about protecting your interests and the people
you care about during your lifetime.

Think about what would happen if you were suddenly incapacitated due to an accident or illness.
Who would have the knowledge and legal authority to act on your behalf? Protecting yourself and the people who
depend on you begins with putting the right estate planning documents in place, based on your needs and
circumstances, including the four listed below.

1. Durable power of attorney

A durable power of attorney (POA) is an estate planning document that empowers the individual you
appoint to act as your agent to carry out any legal and/or financial decisions that have to be made on your behalf
during your lifetime, if you are unable to do so yourself. Unlike non-durable POAs that extend specific or limited
powers, such as financial or medical decision-making authority, a durable POA doesn’t end if you become
incapacitated. However, all POAs end upon your death.

2. Living will

Also called a healthcare proxy, a living will enables you to specify the kind of medical care you
do or do not wish to receive in the event of temporary or long-term incapacity. This important estate planning
document also allows you to determine who will make healthcare and end-of-life decisions on your behalf. Ideally,
you want to have a living will in place well before a medical emergency or serious illness occurs. That way, family
members aren’t left guessing, when it comes to making decisions about your care during an already stressful time.

3. Will

A will is an estate planning document that all individuals need regardless of the size or value of
their estate. A will provides instructions for how your property will be distributed after your death and allows you
to name an executor who will serve as your personal representative. Your executor is responsible for overseeing the
distribution of your property and shepherding it through probate, which is the court process required to validate
your will and transfer your assets.

If you die intestate (without a valid will), the distribution of your property will be determined
by the probate court through a lengthy and costly process that may not only drain money due to legal fees, but
significantly delay the transfer of property and assets to your heirs.

Keep in mind, you may own certain assets that sit outside of your will, such as a life insurance
policy, 401(k), or individual retirement account (IRA). These assets transfer directly to the named beneficiaries on
your accounts and are not subject to probate. That’s among many reasons why it’s necessary to review all of your
beneficiary designations and estate planning documents on a regular basis and update them as needed.

4. Trust

A trust is an estate planning document that can provide greater flexibility and control over when
and how property and assets are distributed, as well as enhanced privacy, tax benefits, and continuity of asset
management.

While there are many types of trusts, all trusts fall into one of two categories: revokable or
irrevocable. A living or revocable trust is the most common. This estate planning document provides for the
organization and management of your assets during your lifetime, including any periods of disability. While a
revocable trust can be modified or cancelled at any time during the trust owner or grantor’s lifetime, it becomes
irrevocable upon the death of the grantor.

A primary reason for creating a revocable trust is to avoid probate, making it faster and
easier to distribute your assets to your heirs. This is especially important if your heirs depend on those assets to
meet their daily living expenses. This flexible estate planning document can also be used to divide your assets
after your death to create new trusts for your children or grandchildren to help protect them against creditors or
divorce.

To learn more about estate planning documents, tools, and strategies designed to help protect your
loved ones, lifestyle, and legacy, listen to our latest podcast episode of Frank Wealth Insights. To learn how your team of
independent wealth planning professionals at Return on Life® Wealth Partners can help you and your family pursue the
Return on Life® you desire, contact
us today for a free consultation.

About Return on Life® Wealth Partners

Return on Life Wealth Partners is an independent Registered Investment Advisor (RIA) founded in
1994, with headquarters in Cleveland. The team provides comprehensive wealth planning services to individuals,
families, and business owners. By examining clients’ lives before their money, Return on Life® aligns its advice
with clients’ values. With access to its Complete Family Office (CFO)ˢᴹ and Personal CFO™ services, Return on Life®
Wealth Partners aims to help clients achieve the milestones that matter most to them. This personalized approach
also extends to the institutional and corporate retirement plan services available through 401(k) Prosperity®.

This information is not intended to be a substitute for individualized tax or legal advice. We
suggest that you discuss your specific issues with a qualified advisor.

The opinions expressed and material provided are for general information purposes only.

Investment advice offered through Planned Financial Services, LLC, a Registered Investment
Advisor. Copyright © 2024 Planned Financial Services, LLC. All Rights Reserved.