Introduction to Estate Planning

One of the first things we can do is debunk the myth that only rich people need estate planning.

We know, of course, that nothing could be further from the truth. We don't plan for money; we plan for people - the people we care about and love. That's what really matters! And, estate planning means taking the time to figure out how much our loved ones depend upon us for comfort, safety, an acceptable standard of living, and the attainment of certain goals, and then taking the necessary steps to insure that those needs will be taken care of even if we can't provide them on our own.

It really is that simple. And, its a logical process that you'll be able to address at your leisure, without the fear of anyone looking over your shoulder. Then, when you've gotten to the point where you know what needs to be done, you'll be ready to put your plan into effect.

In this section, we'll acquaint you with some of the basic tools of estate planning. Historically, the work horse of all estate planning tools has been the Last Will and Testament. This, as you may know, is the document that allows you to designate the beneficiaries of your worldly possessions upon your death. It also allows you to designate the guardian or guardians of your minor children and the personal representatives to handle the administration of your estate.

In recent years, however, the revocable living trust has become a popular substitute for a Last Will and Testament, primarily because it allows your assets to pass to your designated beneficiaries without the expense and time-consuming delays of probate. While not for everyone, there is no doubt that the revocable living trust has become the cornerstone of modern estate planning for many individuals.

Unfortunately, estate planning in the 21st century is no longer concerned with just the prospect of dying. For many people, the threat of becoming incapacatated and not being able to attend to one's own personal and financial affairs is just as troubling. For this reason, the durable power of attorney and the health care directives have risen dramatically in importance in estate planning.

So, if you're ready to explore these "tools" of estate planning in greater detail, simply click on any of the menu items listed above. When you click on any of these menu items, you'll notice that a sub-menu opens on the upper-right side of each page, giving you even more information about each of these estate planning tools.

[Reference - Estate Planning]