Estate Planning - Essential Elements Of A Good Plan Should Be Prepared By An Attorney

The Boy Scout motto, "Be Prepared," can be applied to many areas of daily life

, including estate planning. A good partner in this process is an attorney.

There is some confusion about what estate planning really is. This is not an investment plan or a financial plan. It is, rather, a method of making sure your assets are distributed according to your wishes after your death. You may not be able to take them with you, but you can use the law to direct who gets them.

An estate plan can be looked at as a collection of essential documents, each linked to a particular life event or concern, such as funding of a trust, or health care directives. Some basic documents are:

* A will, the statement of how an individual wants his or her assets distributed after death

* A revokable living trust, a way of protecting assets over $100,000 and up

* Certification of trust, which is a summary version of the full trust document.

* Health care directive, which provides instructions on end-of-life measures and care

* A durable power of attorney, an authorization for one individual to act on behalf of another for end-of-life decision making

* Property agreement

* Beneficiary designations, which need to be coordinated with the will and any trusts in place

These and other estate planning forms can be accessed online, and depending on how complex your assets are, the forms can be a good starting point. However, since inheritance laws are a moving target and vary from state to state, it is still a good idea to work with an attorney, especially if your assets include a business or property.

Another excellent planning partner is a licensed estate planner. This is equivalent to hiring a harbor pilot who can steer your financial ship safely into shore. There are also attorneys who specialize in estate law, so an essential planning tool is research on the qualifications of potential advisors.

Once the framework of the plan is in place, the next step is to work with a financial advisor to identify current assets and establish financial goals. The space between the assets already in place and medium- to long-term goals is where financial planning comes in.

Estate and financial planning is best achieved as a cooperative venture between you, your attorney and your financial advisor. (There are financial advisors who are also attorneys, and vice-versa). This will help ensure that your estate and investment plans are in sync and in accordance with relevant laws, while also helping you achieve your goals and take care of your beneficiaries.

by: Stephen Daniels

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