When you think about it, estate planning is the process of making decisions now so that other people don't have to guess what you want done later (at your incapacity or death).
A good estate plan, at a minimum, will:
- Appoint a responsible person to make financial decisions for you;
- Appoint a responsible person to make medical and personal care decisions for you;
- Leave clear instructions about managing your assets while you're alive; and
- Determine how your estate will be divided among your beneficiaries when you die.
When appropriate, your plan will also consider the tax, financial, business, and economic impacts of the legacy you are leaving for your loved ones.
Because estate planning covers many different types of decisions, your plan will usually include many documents such as a Will, Trust, Power of Attorney, and an Advance Health Care Directive, among others.
One of our favorite, free, and easy-to-understand consumer guides that answers this question in greater detail is published by the California State Bar Foundation. You can download it for free, here:
http://www.calbar.ca.gov/Public/Pamphlets/EstatePlanning.aspx
Still got questions? If you live in California, call 818.707.8200 to speak with an attorney about your individual estate planning needs.
[This blog is for informational purposes only and may not be relied upon as legal advice.]