Estate planning is about more than deciding who inherits your property. A comprehensive estate plan helps protect your family, provides guidance during medical emergencies and ensures your wishes are carried out if you become unable to make decisions for yourself.
While every plan should reflect your unique goals, several core documents form the foundation of most estate plans.
Last will and testament
A will explains how you want your assets distributed after your death. It also allows you to name:
- Beneficiaries
- An executor to administer your estate
- A guardian for minor children
Without a valid will, state law determines who inherits your property, which may not reflect your intentions.
Revocable living trust
Many people also choose to establish a revocable living trust. A trust may help:
- Avoid probate for certain assets
- Simplify estate administration
- Maintain greater privacy
- Provide ongoing management of assets
Not every estate requires a trust, but it can be a valuable planning tool depending on your financial situation.
Financial power of attorney
A financial power of attorney authorizes someone you trust to handle financial matters if you become unable to act on your own behalf. Depending on the document’s terms, your agent may be able to:
- Pay bills
- Manage investments
- Handle banking transactions
- Conduct real estate transactions
Selecting a trustworthy individual is one of the most important decisions in the planning process.
Health care directives
Medical planning documents help ensure your healthcare wishes are respected if you cannot communicate them yourself. These often include:
- A health care power of attorney
- An advance directive or living will
- HIPAA authorization forms
Together, these documents allow trusted individuals to make informed medical decisions when necessary.
Review your beneficiary designations
Some assets pass directly to named beneficiaries regardless of what your will says. Be sure to review beneficiary designations for:
- Life insurance policies
- Retirement accounts
- Payable-on-death bank accounts
- Transfer-on-death investment accounts
Keeping these designations current helps prevent unintended results.
Create a plan that fits your goals
Every family’s needs are different. A thoughtful estate plan should reflect your financial circumstances, personal wishes and long-term objectives. An experienced estate planning attorney can help you prepare the right combination of documents, keep them updated as your life changes and provide confidence that your loved ones will be protected in the future.
