Estate planning is the process of organizing and arranging for the management and distribution of your assets after your death. Here are the five most important estate planning documents:
. Will
A will is legal documents that specifies how you want your assets to be distributed after your death. It can also appoint a guardian for any minor children and name an executor to manage the distribution of your assets.
. Durable power of attorney:
A durable power of attorney allows you to appoint someone to manage your financial affairs if you become incapacitated or unable to make decisions of yourself.
. Healthcare power or attorney:
A healthcare power of attorney allows you to appoint someone to make medical decisions on your behalf if you are unable to do so on.
. Living will:
A living will, also known as an advance directive, is a document that specifies your wishes for end-of-life medical care. It can outline the types of treatments you do or do not want to receive if you are unable to to make those decision for yourself.
. Trust:
A trust is legal arrangement that allows you to specify how you want your assets to be managed and distributed during your lifetime and after your death. There are various types of trust, each its own unique benefits and drawbacks.
Estate planning is the process of organizing and preparing for the management and distribution of your assets after your death. There are several key documents that are typically included in an estate plan, including: