Estate planning is the process of arranging for the management and distribution of your assets and responsibilities after you pass away or if you become incapacitated. This planning is essential to protect your family’s financial future, minimize taxes, and ensure your wishes are honored.

An estate plan generally includes a will, a trust (if applicable), power of attorney, healthcare directives, and beneficiary designations. Each document serves a unique purpose in managing your assets, healthcare decisions, and personal wishes.

It’s recommended to review and update your estate plan every three to five years or whenever you experience a major life change, such as marriage, divorce, the birth of a child, or significant financial changes.

A will is a document that outlines your wishes for asset distribution after death, while a trust is a legal arrangement that can manage your assets both during your lifetime and after your death. Trusts often help avoid probate, offer more privacy, and provide more control over asset distribution.

Yes, a power of attorney is crucial. It allows a trusted individual to make financial or medical decisions on your behalf if you are unable to do so. This ensures that your affairs are managed according to your wishes if you become incapacitated.

If you pass away without a will, your assets will be distributed according to state laws, which may not align with your wishes. This process, known as intestate succession, can also be more time-consuming and costly for your family.