Simply, estate planning is the process for making a plan that dictates who you want to receive your assets when you die. However, estate planning is often not simple and, if done properly, creates a plan that encompasses far more that the distribution of your assets at your death.
Estate planning may also include:
- Executing durable power of attorney documents designating a trusted person to manage your affairs should you not be able to do so on your own;
- Providing guidance to your loved ones regarding your care choices should you become unable to express your wishes;
- Planning for the financial implications of future care needs including eligibility for Medicaid;
- Choosing who will administer your estate after your death;
- Planning for the needs of loved ones who have financial management difficulties;
- Planning for the protection of loved ones who are disabled or receiving need-based government benefits;
- Determining and creating a plan for how financial resources are to be used when you are part of a blended family;
- Planning for the disposition of your remains after you pass;
- Estate tax planning;
- Planning for financial needs and naming a guardian for minor children;
- Planning for the needs of pets when you pass;
- Establishing or creating a plan to accomplish charitable giving.