The purpose of setting forth the following information is to give the reader an overview and basic understanding of the estate planning process.  It is certainly not all-inclusive, but will provide the reader with a starting point for determining individual estate planning needs.

What is estate planning: 

The following issues are all part of estate planning:

Planning for the distribution of assets after you die to ensure avoidance of probate, and avoidance of estate tax to the maximum extent of the law.

Deciding whether to establish limits on ages at which children or other beneficiaries have access to their inheritance.

Planning for children with disabilities.

Nominating guardians for minor children.

Appointing an agent for power of attorney over financial matters.

Creating an Advance Health Care Directive and appointing an agent to carry out your health care directives.

Making sure that you name beneficiaries of your retirement plans and insurance policies in such a way as to balance and protect your overall estate plan.

Who needs estate planning: 

Everyone with assets needs a plan.  It may be simple, or it may be more complex, depending upon your needs.  Generally, if you own real property, you will probably want to create a Revocable Living Trust to avoid probate.  Probate is an expensive, time-consuming, public procedure, and creating a Living Trust will avoid the time and expense of this court-administered procedure. 

Many people believe that holding their assets in joint tenancy avoids the probate issue. However, joint tenancy has its own problems, such as exposing your property to the claims of your joint tenant's creditors.  Moreover, if the joint tenants die in a common accident, probate will not be avoided.

Part of estate planning is to knowledgeably decide how to hold title to your property, whether by use of a Trust, by joint tenancy, by use of pay-on-death clauses, and to know the result of these choices, for they all have differing rules and consequences. 

What legal documents are needed:

The following estate planning documents are essential:

Living Trust, if indicated by your situation;

Will, or Pourover Will;

Power of Attorney;

Health Care Directive.