What To Include In Your Estate Plan In Missouri

Estate planning is an essential process that allows you to plan for the future, ensuring that your assets are distributed according to your wishes after your passing. While it can seem daunting, an estate plan is a powerful tool that offers peace of mind for both you and your loved ones. If you're in Missouri, understanding what should be included in your estate plan is crucial for ensuring that your intentions are followed through efficiently and legally.

1. Last Will and Testament

One of the most basic yet essential components of any estate plan is the Last Will and Testament. In Missouri, this document outlines how you want your assets distributed after you pass away. It allows you to:

• Name beneficiaries for your property, assets, and possessions
• Appoint guardians for your minor children
• Name an executor, who will be responsible for administering your estate according to your wishes
• Specify any charitable donations or bequests
• Include instructions for your funeral and burial, if desired
  

A properly executed will ensures that your assets are distributed in accordance with your desires, avoiding the state's default distribution rules.

2. Trusts

A trust is a legal arrangement in which you transfer assets to a trustee, who then manages those assets for the benefit of designated beneficiaries. There are several types of trusts, including:

• Revocable Living Trust: This allows you to retain control over your assets while you're alive and can be modified or revoked at any time. It helps avoid probate (the legal process of distributing your assets) and can make the transfer of assets smoother upon your death.
• Irrevocable Trust: Once established, you cannot modify or revoke this type of trust, but it can offer significant estate tax benefits and asset protection.
  

Including a trust in your Missouri estate plan can protect your privacy, ensure efficient management of your assets, and help avoid the lengthy probate process.

3. Durable Power of Attorney

A durable power of attorney allows you to appoint someone to make financial and legal decisions on your behalf in the event that you become incapacitated. This document is crucial because it ensures that someone you trust can manage your affairs if you're unable to do so. In Missouri, the power of attorney remains in effect even if you become mentally incompetent.



Without a durable power of attorney, your family may have to go through a court proceeding to be appointed as your guardian or conservator, which can be time-consuming and costly.

4. Healthcare Power of Attorney

5. Living Will (Advance Directive)

A living will, also known as an advance directive, is a legal document that outlines your wishes regarding end-of-life care, particularly in situations where you are terminally ill or incapacitated. It allows you to express your preferences about life-sustaining treatments, organ donation, and other aspects of medical care.

In Missouri, a living will can be a critical part of your estate plan, as it provides clear guidance to your healthcare agent and medical providers in the event that you are unable to make decisions for yourself.

6. Beneficiary Designations

Many assets, such as life insurance policies, retirement accounts (IRAs, 401(k)s), and bank accounts, allow you to designate beneficiaries. These designations override your will and ensure that specific assets go directly to the named beneficiaries.



It's important to regularly review and update beneficiary designations to ensure they reflect your current intentions. For example, if you have experienced significant life changes, such as marriage, divorce, or the birth of a child, updating your beneficiary designations can prevent confusion or legal disputes.

7. Guardianship for Minor Children

If you have minor children, one of the most important decisions in your estate plan is to designate a guardian for them in the event of your death or incapacity. This is typically addressed in your will.

Choosing a guardian for your children can be a difficult and personal decision. Consider someone who shares your values and parenting philosophy, and make sure that the individual is willing to take on the responsibility of raising your children. It's also important to have a backup guardian in case your first choice is unable or unwilling to serve.

8. Funeral and Burial Instructions

While not legally required, many people choose to include funeral and burial instructions in their estate plan. This could include your preferences for burial or cremation, a specific cemetery, or any specific rituals or ceremonies you’d like to be performed. Including these instructions can help ease the burden on your family during a difficult time.



Additionally, you can create a prepaid funeral plan, which provides financial assistance for funeral and burial expenses and relieves your family from making difficult decisions at the time of your passing.

9. Letter of Intent

While not legally binding, a letter of intent is a personal letter that can be included with your estate plan. It provides further details on your wishes and can serve as a communication tool for your family. For example, you may use the letter to explain your reasoning behind certain decisions, clarify specific desires, or provide instructions on how to handle personal or sentimental items.

10. Tax Considerations and Strategies

Missouri’s estate tax laws are important to understand when creating your estate plan. While Missouri does not have a state estate tax, the federal estate tax may apply if your estate exceeds certain thresholds. It’s important to work with an estate planning attorney and tax professional to determine whether your estate may be subject to federal estate taxes and explore strategies to minimize the tax burden on your heirs.

Conclusion

An effective estate plan can provide clarity, peace of mind, and financial security for your loved ones. In Missouri, an estate plan typically includes a will, trust, powers of attorney, healthcare directives, and other important documents tailored to your needs and preferences. Working with an experienced estate planning attorney in Missouri can help ensure your estate plan is comprehensive and legally sound, protecting your assets and ensuring your wishes are honored after your passing. Daniel Finder at Finder Law, LLC has over 10 years of experience in probate law & estate planning & can help guide you through this process.

Call our office today to schedule a consultation.

Remember, an estate plan isn’t something to create once and forget about—it’s important to review and update it regularly to reflect any changes in your life, financial situation, or the law. With the right plan in place, you can rest easy knowing that your legacy will be carried out exactly as you envision.