Estate Planning

This article courtesy of Feed the Pig. Copyright 2011 American Institute of Certified Public Accountants.

Estate planning is a process designed to help you manage and preserve your assets while you are alive, and to conserve and control their distribution after your death according to your goals and objectives. Estate planning is an important part of every financial plan, no matter the size of the estate. It's also an area that is often overlooked. With the right planning, you can save yourself, and your loved ones, money and emotional hardship. Here are a few things to consider.

Power of attorney. A durable power of attorney document lets you name someone to manage your property for you in case you become incapacitated and cannot do so yourself.

Advanced medical directive. The three main types of advanced medical directives are a living will, a durable power of attorney for health care (also known as a health-care proxy) and a "Do Not Resuscitate" order. Be aware that not all states allow each kind of medical directive, so make sure you execute one that will be effective for you.

A will. No matter your relationship or family status, it is a good idea to have a will. A will allows you to leave your estate to anyone you choose. If you've committed to a life partner but aren't legally married a will is essential if you want your property to pass to your partner should anything happen to you. Without a will state law directs that only your closest relatives will inherit your property.

An advisor. There are many factors that determine your particular estate planning needs. A financial professional, like a CPA, can help make sure you are doing everything necessary—and doing it correctly—to take care of your estate and provide for your loved ones.

For more estate planning information, visit 360 Degrees of Financial Planning