Estate planning is the process of anticipating and arranging for the disposal of your estate. This involves the review of your finances and assets, and how you would like those distributed in the event of your death. But it also involves the reviewing of your health care directives and long term health care. The purpose is to protect your loved ones in the event of health issues or death. Spouses generally need to do this together. In most cases the legal documents involved will include a Will, Advanced Health Care Directive, Financial Power of Attorney, and in some cases, a Living Trust.
A Will devises real and personal property to beneficiaries after your death. It can also set up trusts for your children and designate Guardians to care for your children in the event that you or your spouse cannot.
A Living Trust is created during your lifetime to manage your assets and provide for their distribution after your death---without going through probate. This is advised in certain cases.
An advance health care directive is a combination of a Living Will and a Durable Health Power of Attorney. This directive designates agents who will act for you in the event that you are unable to do so yourself. The LIving Will allows you to plan your course of treatment in the event of a catastrophic illness or accident.
