Estate planning is a very broad and largely personal subject. Estate planning involves taking control of and transferring estate assets after one's death, as well as making decisions about estate management during one's life.
In order to do estate planning most effectively, it is important that one first discuss estate planning with their estate planner or estate attorney. These professionals will be able to provide sound legal advice about the most effective ways to address your estate. In addition, it is wise to speak with your family members and loved ones regarding estate issues.
Estate planning decisions may include:
- Will (wills are also known as a last will and testament) – a written document which states how you want your estate distributed after your death;
- Trust – a written document in which you place your estate;
- Power of Attorney – the power given to another person (the attorney in fact) to act on your behalf by making decisions regarding estate assets, for example, whether or not to withdraw life-sustaining treatment should you become terminally ill or otherwise incapacitated;
- Enduring Power of Attorney – the same as above, but does not go into effect until incapacity occurs. This is different from other powers of attorney which are considered " springing" because they take effect only upon incapacity.
- Living Will/Medical Directive – expresses wishes about medical care should one experience an extended period where one is unable to communicate, for example after suffering a stroke. The two terms are interchangeable.
- Age of Majority – The age at which a person may legally enter into contracts, usually 18 years old in most states; and
- Advance Directive/Health Care Directive – also known as a living will, this is a document that expresses one's wishes about medical care when they become incapacitated or when they can no longer make their own decisions.
