Estate planning is an umbrella term that covers many legal steps you can take to plan for your incapacity, and for after your death.
The most commonly used documents are:
- Trusts: A trust is a legal entity created by a written document that says what the money in the trust is to be used for, and who is in charge of it. There are many different types of trusts. The most common trust for estate planning is the Living Revocable Trust. This type of trust lets you say who will be in control of your assets if you are incapacitated, and who gets your money and property after your death. It puts you in charge of major decisions, rather than a judge going by state law.
- Will: A Will determines who will inherit your money and property after your death. You can also say who you would want to be the Executor of your estate. A Will does not address periods of incapacity. If you are the parent of a minor child, your Will is where you can nominate the person(s) you would want to be their child’s guardian. If you are a parent who has been appointed Guardian of an adult child, you also need to nominate your replacement as Guardian in your Will.
- Durable Power of Attorney: A Durable Power of Attorney lets you say who can sign your name for you. That person can do almost any financial transaction you can do. The Durable Power of Attorney stays in effect until your death, even during incapacity.
- Healthcare Proxy (also called Healthcare Power of Attorney): You can say who you want physicians or other healthcare providers to go to for medical decisions if you are not able to answer questions or make decisions yourself.
- Living Will: Your Living Will is your chance, in calm waters, to let your family know what your wishes are for end-of-life care.
