Estate planning is the process of organizing your affairs and assets (your “estate”) so that you may maximize the benefits that your assets can provide during your lifetime and ensure that your assets will pass on to your chosen beneficiaries (spouses, children, grandchildren, nieces, nephews, siblings, charities, schools, etc.) with a minimum of cost, delay and inconvenience. The document most often associated with estate planning is a Will.

An estate plan typically includes the following documents:

If you die without a Will (also known as dying “intestate”), your state’s laws will determine who inherits your assets. Such a distribution of your estate may be contrary to your wishes. In addition, the process of distributing and administering your estate will be more costly and time consuming than would be the case if you had a will, which in turn affects your beneficiaries.

A Will is a document in which you specify how and to whom your assets will be distributed at the time of your death. A Will also allows you to appoint an executor to administer your estate, appoint a guardian for your minor children, and even establish a Trust for your minor children. There are, however, certain assets that a will may not control. For example, such assets as property held jointly with others, life insurance policies, retirement plans, etc. will pass to the joint owners or named beneficiaries outside of the Will.

A Trust is a written agreement under which property is held in trust by a trustee(s) for the benefit of a beneficiary(ies) in accordance with the terms of the trust. The person(s) making the trust is known as the settlor(s). A person may be both a trustee and a beneficiary of the same trust. A Trust created during your lifetime is known as a “living” or “inter vivos” trust, and may be revocable or irrevocable. A living trust is a means of managing your estate during your lifetime and may provide certain tax benefits and asset protection and control. A Trust created through your will is known as a “testamentary” Trust. People often create testamentary Trusts for the benefit of their minor children as a means of providing support and education followed by a distribution of assets at a later age.

A Living Will is a means of deciding in advance how you wish to be treated when faced with a medical condition where the decision to use life-sustaining treatments may prolong your life or, if not used, will eventually result in your death. For example, you may decide whether or not you will be given life-sustaining treatment and/or nourishment in the event you become terminally ill, injured or incapacitated, along with other medical directions you wish to give that will impact your end of life. Living wills do not address or govern your medical treatment in non-life threatening situations.

A power of attorney gives one or more persons the power to act on your behalf. The person given the power of attorney to act on your behalf is known as your “agent” or “attorney-in-fact”. With a valid power of attorney, your agent can take any action permitted in the document. A power of attorney is “durable” if it is unlimited in time and remains effective even if you become incapacitated or unable to act on your own behalf. The advantage of a durable power of attorney is to appoint the person of your choice to manage your affairs if you are unable to, and, should the need arise, avoid having a court appoint a guardian to manage your affairs.

A durable power of attorney for health care gives one or more persons the power to make medical and health care decisions on your behalf in the event that you are unable to make them yourself or to communicate your preferences.