Pärimisplaan

Pärimisplaan, or estate plan, is a comprehensive strategy for managing and distributing an individual's assets and affairs after their death. It is a crucial tool for ensuring that one's wishes are carried out and for minimizing potential complications for heirs. A well-structured pärimisplaan typically involves several key components.

The most common element is a will, known as a testament in Estonian. This legal document specifies how an individual's property should be divided among beneficiaries and names an executor to oversee the process. Without a will, the distribution of assets will be determined by statutory succession laws, which may not align with the deceased's intentions.

Beyond a will, a pärimisplaan may also include provisions for enduring powers of attorney, which designate someone to manage financial or personal care matters if the individual becomes incapacitated during their lifetime. Advance healthcare directives or living wills are also often part of a pärimisplaan, outlining preferences for medical treatment in situations where the individual cannot communicate them.

Furthermore, estate planning can involve the establishment of trusts, which can be used to hold and manage assets for beneficiaries, often with specific conditions for distribution. Life insurance policies and retirement accounts with designated beneficiaries are also integral parts of an overall pärimisplaan, as these assets typically pass directly to the named individuals outside of the probate process. The objective of a pärimisplaan is to provide clarity, security, and a smooth transition of assets and responsibilities.