Estate Planning 101

Estate planning is perhaps one of the most important steps a person can take to make sure that their final property and health care wishes are honored, and that loved ones are provided for in their absence. Here are some estate planning basics as well as important facts and information about estate planning.

The first thing that we need to understand is what an "Estate" is.

An "estate" consists of all property owned by a person at the time of their death, including but not limited to :

Real estate

Bank accounts

Stocks and other securities

Life insurance policies

Personal property

The next topic is understanding what an estate plan does or what it should do.

An estate plan should clearly identify any family members and other people that you wish to receive your property after your death. An estate plan should make sure that your property will be transferred to those people you have identified, as quickly and with as few legal hurdles as possible. A good estate plan will ensure to include strong financial planning so that the amount of taxes that will need to be paid in order for your property to pass to others after your death is minimal. It's a well planned estate plan will also include a health care proxy which states what if any life-prolonging medical care you wish to receive should you be unable to make your wishes known when the time comes as well as who is designated to make such decisions should you be incapacitated to make those decisions for yourself. Finally, an estate plan should also have a provision for funeral arrangements and how related expenses are to be paid.

Many times it is difficult to talk about this topic with loved ones. It can be sensitive and uncomfortable. No one wants to talk about death and it's consequences. It is best to seek the advice of an experienced attorney who can help make these provisions.