Quick summary
For those who haven't yet done any estate planning -- finalizing legal documents to manage and pass on property and set out wishes for end-of-life matters -- it's likely on their list of things to do.
You can provide some encouragement by taking the time to understand and then explain some of the basic arrangements involved in estate planning, and the protections and assurances they can provide.
What is estate planning?
Estate planning is a process in which individuals specify how their money and other property should be managed during life and after their deaths. And it commonly includes a related issue: directions about the type of medical care they want to receive if they become unable to communicate those wishes directly.
Specific final arrangements, such as whether to be buried or cremated, are also often part of the documents. And more sophisticated estate plans may even cover deferring or decreasing estate taxes or winding up a business.
While these matters require some soul-searching and forethought, estate planning is not the ordered and lockstep procedure that the term implies. In reality, it simply involves drawing up and finalizing one or more documents that give legal force to someone's wishes for property management and medical care.
What's in an estate?
When it comes to estate planning, myths and misconceptions abound. The primary one is that it's the province of only the very rich. But despite its lofty-sounding name, estate planning isn't reserved just for those who have a lot of money or property.
In the eyes of the law, an "estate" is simply all the property individuals own, both outright and jointly -- including bank accounts, real estate, stocks and bonds, vehicles, jewelry, retirement accounts, and even pets. And it includes interest and money to which they are later entitled, such as insurance proceeds and securities dividends.
What if there's no estate planning?
If they haven't done any formal estate planning, then decisions about their medical care, property, and final arrangements will be made without their input.
Medical decisions will fall to the treating doctor or hospital. Property will be divided and distributed at their death according to the hierarchy of survivors specified by state law. And final arrangements will be carried out according to the whims of relatives or in accord with community customs. And the plans these people or institutions put in place may not match the wishes of those for whom they're making the decisions.
This is a very succinct and helpful article in simple and straightforward language.
easy to read and understand; able to make a checklist of "to do's" from it
Hello T.O., Thank you very much for your question. If you'd like, you can post it in our Ask & Answer section, here: ( http://www.caring.com/ask ). I hope that helps. Take care -- Emily | Community Manager
I have a question: How do we protect a nursing home from using our mom's land payment ? she has a living estate will but we are not sure of what the rules are on this when and if she goes into a nursing home... we need to know so we can get this started in time.... does a living estate will protect this? my husband is the power of attorny and also has joint accounts with her...
Can MERF came back and get money out of checking accounts when you are consider below the average on Protected Resources Assessment by the state?
I has been hearing comments about the Estate Planning and always I had said to me " We have time to do it" Now I found myself beign the caregiver to my wife ( Alzheimer) . Your article has made me aware that time to do important things is always now. I let it pass and it's going to be more complicated now. Thanks, I'm beginning to prepare my Estate Planning today. Keep your good work. Heliokopter
super info for all people
If my Mother goes into a nursing home, can the nursing home get money from her living trust or can they put a lean on the trust and collect after settlement? If so, what can be done to protect her home and assets? Transfer of title, sell the home?