Estate Planning

In addition to insurance, another way to protect your family is through estate planning. It can be very simple, or more complex, depending on your circumstances and wishes. It is an extremely important aspect of financial planning and should be given some of your attention. An attorney or other financial professional can help decide which of the following elements you need, and prepare the appropriate documents.

In a thorough estate plan, you should include:
A will, which lets you name beneficiaries who will inherit your estate and guardians for your children. As part of this will, you will also include an executor who will be in charge of settling your estate.

A trust, which lets you transfer your assets to a trustee to manage for your beneficiaries. Trusts can take effect during or after your lifetime. Some trusts will allow you to reduce your estate tax. Trusts vary widely so it is important that you clearly understand what you are setting up.

A power of attorney, which allows someone you've chosen to make financial and legal decisions on your behalf if you are incapacitated.

A health-care power of attorney, which (or health-care proxy) allows someone you've chosen to make specific medical decisions on your behalf if you are incapacitated.

A letter of instruction, which is an informal document you can write on your own. It tells your loved ones where to find your assets and important papers, and what you wish them to do upon your death.

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