Estate Planning

Basic estate planning, such as a Will and Power of Attorney for Healthcare Decisions, should be added to your to-do list.

Estate planning is the process of managing and preparing for the disposition of an estate to maximize the goals of the estate owner. The ultimate goal of estate planning is to make sure the greatest amount of the estate passes to the estate owner's intended beneficiaries, by paying the least amount of taxes and circumventing probate court involvement. Other goals can include providing for and designating guardians for minor children and planning for incapacity.

There are many legal vehicles available to solve these and other estate related issues. The most common include wills, trusts, powers of attorney for financial decisions and for medical decisions (called the durable power of attorney for asset management and the durable power of attorney for health care). These devices and more are discussed in the SAGE Guide to Personal Finance.