Estate planning is a subject which every responsible adult thinks about, but which many fear and therefore many avoid. It is true that proper estate planning requires us to consider unhappy possibilities; but there is relief and satisfaction in having done the responsible thing. A good estate plan is typically not costly. A couple whose taxable assets are under two million dollars can usually achieve essential estate planning for under two thousand dollars. Conversely, the financial and emotional cost of there being no planning in place when death or medical disaster strikes can be very great. The several documents necessary to a basic estate plan are a Will, or Last Will and Testament; and Advance Directives, which are writings which address medical matters. One or more trusts may be necessary. Attention to the beneficiary clauses and ownership of life insurance policies and financial accounts is important.

1. The Last Will and Testament.

A Will, or Last Will and Testament, is a centerpiece of basic estate planning, and is particularly important for the parents of young children who must make provision for the physical and financial care of those children if both parents are deceased.  A Will may contain a trust which will hold the property of a beneficiary and allow the use of that property for the beneficiary’s benefit.

2. Advance Directives

Advance Directives are written instructions, “directives”, which identify the persons authorized to make medical care and treatment decisions if the injured or ill person cannot communicate, and separately, which designate which life support systems are and are not to be utilized in a case of permanent unconsciousness, or unconsciousness coupled with imminent death regardless of what measures may forestall it temporarily. Without such writings, the family’s grief may be compounded by confusion regarding what person has authority, and what the stricken person’s wishes and intentions would be, if he or she could express them.  

There are other documents to consider in preparation for an injury or illness which damages the mind. One may designate a person to serve as court-appointed conservator, if appointment of one or more conservators is medically appropriate. There are two types of conservator: “of the person”, of physical welfare, and “of the estate”, of property. It may be preferable to grant a trusted and capable person a durable power of attorney, so that if necessary he or she may privately conduct business, as an agent, without the probate court oversight characteristic of a conservatorship. Some people particularly wish to make written instructions regarding the disposal of their body in the event of death, so that their wishes regarding such subjects as organ donation, cremation, burial, and memorial services are less likely to be forgotten, misunderstood or overlooked.

3. Trusts

A trust separates ownership of property from control of that property. Trusts are often included within Wills, so that a beneficiary can be supported and assisted by the property placed into trust without having authority to access that property directly.