Estate Planning Essentials

Estate planning ensures your assets are distributed according to your wishes and your affairs are managed if you become incapacitated. The four core documents are: a will (directs asset distribution and names a guardian for minor children), a durable power of attorney (authorizes someone to make financial decisions if you are incapacitated), a healthcare power of attorney or healthcare proxy (authorizes someone to make medical decisions), and a living will or advance directive (specifies your wishes for life-sustaining treatment). Without these documents, state intestacy laws determine who inherits your assets, a court appoints someone to manage your affairs, and your family may face costly probate proceedings.