Estate Planning Essentials

A will says who receives your property and names an executor to settle your affairs. A durable financial power of attorney lets a trusted person pay bills, handle bank accounts and deal with paperwork if you become too ill. A healthcare proxy and advance directive guide medical decisions and name who speaks for you. Some families use a living trust to manage property or reduce the need for probate. The right combination depends on your family, what you own and your state's laws. An estate planning attorney can prepare documents that meet your state's signing and witness rules.

Life insurance, retirement accounts and some bank or investment accounts pass directly to the people named on beneficiary forms, even if your will says something different. Review each form and update names after marriages, divorces or deaths in the family. Check how your home, vehicles and accounts are titled, since jointly owned property often passes to the surviving owner automatically. Naming contingent beneficiaries avoids problems if a primary beneficiary dies first. Keep copies of every beneficiary form with your will so your executor does not have to search for them later.

If you have a pending or possible asbestos claim, the executor or personal representative of your estate may need to continue it after your death, attend meetings and sign documents. Choose someone organized, trustworthy and willing to take on that role, and tell your lawyer who it is. Keep your work history, medical records, expense receipts and claim paperwork in a place your executor can reach. Talking openly with family about your plans reduces the chance of disputes. Reviewing documents every few years, or after major life changes, keeps them accurate.

1. 1

   Schedule an appointment with an estate planning attorney to prepare or update your will.

2. 2

   Review and update beneficiary forms on life insurance, retirement and bank accounts.

3. 3

   Name a financial power of attorney and healthcare proxy you trust completely.

4. 4

   Tell your executor where your will, claim records and account information are stored.