When most people hear the term “estate planning” they immediately think of the documents typically used in conjunction with an estate plan, i.e. Wills, Trusts, Powers of Attorney and Living Wills. However, these documents are actually tools in the toolbox an estate planning attorney uses to craft an estate plan to accomplish your specific planning goals.

To craft an estate plan for you, the attorney needs to know what your estate planning goals are. Who you want to benefit from your property and assets after you pass away, or if you are unable to continue to manage them yourself. Whether you and your spouse/life partner have differing beneficiaries. Will you need to provide for beneficiaries that are minors or disabled. What are your goals for your care should your health decline. Is the estate large enough to include tax and gift planning. By taking the time to create a comprehensive estate plan, you can lay out a plan to provide for yourself and your loved ones.

To craft an estate plan that is just right for you, do your homework. Here are steps to consider before meeting with your estate planning attorney:

1. Review Your Assets
A good first step in estate planning is to take an inventory of your assets and how they are titled. This includes real estate, bank accounts, retirement savings, investments, personal possessions and any business interests. Knowing the value and location of each asset, and how it is titled, is important to ensure they are included, or account for, in your estate plan.

2. Consider Your Beneficiaries
People often assume that their spouse will automatically inherit all of their assets if they pass and do not have Will. However, that may not be the case depending on the state’s intestate law and how an asset is titled. This is because, many assets, such as life insurance and retirement accounts, are passed directly to the individuals listed as beneficiaries. Further, additional planning may be needed if there are beneficiaries that are minors, are disabled, or if each spouse has differing beneficiaries. Failing to consider the circumstances of the contemplated beneficiaries of your estate plan can lead to unintended outcomes and family conflicts.

3. Time to meet with a Professional
After doing your homework, meeting with an attorney to start getting your estate plan on paper is a good next step. An effective estate plan contemplates legal, financial and tax considerations. Typically, the attorney will work with financial planning and tax professionals to ensure you have an estate plan that meets your planning goals.

4. Do I need a Will or a Trust?
An attorney will help you determine whether a Will is sufficient in your circumstance to accomplish your planning goals. A Will specifies how your assets are distributed after you pass away. If you have a trust a Will works in conjunction with it to ensure assets are distributed according to your wishes. It allows you to name a personal representative to manage your estate and to provide for trustees and guardians of minor or disabled beneficiaries. Without a Will, probate laws typically determine how your property is divided, which may not align with your planning goals.

There are numerous types of trusts. Living trusts are created during your lifetime, and testamentary trusts arise upon your death. Trusts are especially helpful planning tools for asset protection, when there are different beneficiaries due to prior marriages, when there are beneficiaries with special needs or when you own real property in different states. Trusts are not a “one size fits all” planning tool. Although they are often promoted as alternatives to probate, they are not the right planning tool for every estate plan.

5. Planning for Disability - Powers of Attorney and Living Wills
A power of attorney (POA) is a document used while you are still living. It provides a trusted person with the legal authority to act on your behalf if you become unable to make decisions due to illness or injury. A general durable POA allows someone to handle financial matters, sign contacts and act as if you were conducting the transaction yourself.

A healthcare POA (HCPOA) also called a healthcare proxy, designates someone to make medical decisions on your behalf. Typically, a HCPOA is included with the Living Will, also called an advance healthcare directive. The Living Will allows you to determine while you are healthy what types of treatments you do, or do not, want your healthcare providers to continue to perform once you have reached a point of non-recovery.

The exact combination of documents and how they are drafted comprises the estate planning process, which may change over time and in circumstances. A good estate plan is one crafted with your particular circumstances and planning goals in mind. It is a process that is too important to undertake by yourself. Working with an estate planning attorney will make all the difference to you and your loved ones.