What Is Estate Planning? Wills, Trusts, POAs, and More

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Estate planning helps ensure your assets go to the right people. Learn about wills, trusts, POAs, and how to choose an estate planning attorney.  This month’s article from Charles Schwab walks us through this!  

Key takeaways

  • Estate planning helps ensure your wishes are carried out, and may reduce probate for loved ones.
  • A basic estate plan should include a will, durable power of attorney, health care proxy, and advance health care directives.
  • Without a will, your property may be distributed based on state intestacy laws, which may not align with your wishes.
  • Strategies like trusts, beneficiary designations, and asset titling can help your assets pass directly to heirs, while reducing or bypassing probate.
  • Beneficiary designations generally override wills and trusts, so it’s important to review and update them at least annually and after major life events.
  • Lifetime gifting, 529 college savings plans, and charitable giving may help reduce estate and inheritance taxes while benefiting your loved ones now.
  • An experienced estate planning attorney can help assess your needs, prepare your documents, and flag issues you might have missed.

Estate planning might sound like something you don’t need until you’re older or have more wealth. But regardless of age, net worth, or family situation, even a simple estate plan can help ensure your wishes are carried out. Not having one can cause money, possessions, and even decisions about guardians for minor children to be tied up in court, while legal costs pile up. Learn what estate planning is, why it’s important, key documents, and how to choose an estate planning attorney.

What is estate planning?

Estate planning is the process of determining how you want your assets handled when you can no longer make financial decisions, due to death or incapacity. An estate plan also allows you to put medical requests in writing, to reduce the burden on loved ones if you become ill or hospitalized. It may also help minimize taxes on the assets you leave to loved ones, so more of your legacy is preserved for them.

Estate planning can be relatively simple or complex. Depending on your needs and goals, it may involve creating wills, trusts, and advance health care directives, purchasing life insurance, naming guardians for minor children or heirs with disabilities, and titling assets or designating beneficiaries to ensure property passes to the people you choose.

 

 

Important Disclosures

Aquinas Capital Advisors LLC is not affiliated with Charles Schwab.  The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

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