Glossary

Estate Planning is an area of law in which an individual or family arranges the orderly distribution and transfer of a person’s assets in case of death or disability. 

1. Last Will and Testament.

2. Durable Power of Attorney.

3. Health Care Proxies and Advance Health Care Directives. 

An estate plan ultimately provides detailed instructions to allocate a decedent's assets — including cash, interest in a business, personal property, real estate, securities, and more. 

Estate planning aims to avoid probate, preserve the maximum wealth possible for the intended beneficiaries, and minimize state and income tax consequences. 

Contrary to popular belief, estate planning is not just for the elite and wealthy. 

Estate planning is essential for: 

• Anyone with assets. 

• Anyone who needs a financial or health care directive. 

• Anyone who does not want state statutory guidelines to distribute their assets upon death. 

• Anyone with minor children. 

• Anyone with loved ones who may need responsible financial assistance after they pass. 

Five simple steps to prepare for your estate plan include: 

1. Create an asset inventory. 

(E.g., annuities, bank accounts, debts owed, insurance policies, precious metals, real estate, etc.)

2. Consider your family’s unique needs. 

(E.g., financial management, planned charitable donations, etc.)

3. Contemplate health care directives. 

(E.g., end-of-life and incapacitation instructions, etc.)

4. Classify the appointed administrator of the estate and designated beneficiaries.

5. Consult with an estate planning attorney in your state.