Start With the Decisions No One Can Make Without You
If something happened to you tomorrow, who would raise your children, pay your mortgage, and make your medical decisions? Without a plan in place, those answers are left to state default rules and to a court -- not to you.
Estate planning is how you make those arrangements in advance. It is the process of directing, ahead of time, the management and distribution of your assets and property after your death or incapacitation. It involves creating legal documents such as wills, trusts, powers of attorney, and healthcare directives (i.e., a living will) to ensure that your wishes are followed and your assets are distributed according to your preferences.
Match Each Question to the Right Instrument
- A will identifies who administers probate property, who receives it, and who should serve as guardian for minor children.
- A power of attorney identifies who may handle financial matters during incapacity.
- A healthcare directive records medical instructions and names the person who may speak when you cannot.
- A trust may control how selected property is held, managed, and distributed when that structure fits the family and assets.
Check What the Documents Do Not Control
Account titles and beneficiary designations can direct property outside the will. Compare those records with the plan so the document set and the asset instructions do not point in different directions.