Estate planning

Estate planning is the process of disposing of an estate. Estate planning typically attempts to eliminate uncertainties over the administration of a probate and maximize the value of the estate by reducing taxes and other expenses. Guardians are often designated for minor children and beneficiaries in incapacity. Specific final arrangements or cremated, are also often part of the documents.

 Estate planning involves the will, trusts, beneficiary designations, powers of appointment, property ownership (joint tenancy with rights of survivorship, tenancy in common, tenancy by the entirety), gift, and powers of attorney, specifically the durable financial power of attorney and the durable medical power of attorney.

After widespread litigation and media coverage surrounding the Terri Sheave case, virtually all estate planning attorneys now advise clients to also create a living will. And more sophisticated estate plans may even cover deferring or decreasing estate taxes or winding up a business. Many people confuse a living will with a durable medical power of attorney.

A living will sets out directives concerning end of life decisions, whereas a durable power of attorney gives all medical decision making authority to an appointed individual upon incapacity, including end of life decisions. Some people have both a living will and a health care power of attorney. Some, who wish to give complete discretion to a loved health care power of attorney.