Estate Planning — Protecting Your Loved Ones

Estate planning ensures your assets go to the right people and that your wishes are carried out when you die or become incapacitated.

Core estate planning documents:

Will (Last Will & Testament) — specifies who gets your assets; who raises your minor children (guardian); names executor; goes through probate

Revocable Living Trust — avoids probate; keeps affairs private; names successor trustee; more expensive to set up but saves time and cost later

Power of Attorney — designates someone to make financial decisions if you're incapacitated

Healthcare Proxy/Healthcare Power of Attorney — designates medical decision-maker

Living Will/Advance Directive — specifies end-of-life medical wishes (resuscitation, life support)

Beneficiary designations:

Retirement accounts and life insurance pass DIRECTLY to named beneficiaries — outside the will

Keep beneficiaries updated after marriage, divorce, births

Probate: Court-supervised process for distributing estate. Time-consuming (months to years), costly (fees), and public record. Trusts avoid it.

Reference:

Wikipedia: Estate Planning

https://en.wikipedia.org/wiki/Estate_planning