Estate planning is the process of creating a will, trust, or another legal document that specifies how your assets will be distributed after you die. It can also include provisions for guardianship and care of loved ones should you become incapacitated. 

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Estate planning is important not only because it helps distribute your assets wisely but also because it establishes legally binding terms regarding your wishes for your family. If you don’t have an estate plan in place, your family may end up fighting over who gets what – potentially leaving them without the resources they need to live comfortably.

If you are considering estate planning, there are a few things you should keep in mind. First, make sure you have a good understanding of the tax implications of transferring property into and out of your estate plan. 

Second, consider what type of estate plan would be best suited for your particular financial situation and needs. Finally, take the time to create a clear and accurate will so that everyone knows what you want to be done with your assets after you die.

Types of Estate Planning Documents

A trust can be used to protect your assets while you're still living. The trust allows you to appoint someone ( typically a family member or friend) to manage the trust on your behalf. This person is legally responsible for managing the assets in the trust according to your wishes, rather than having them distributed automatically upon your death.

Power of attorney allows someone else to make decisions on your behalf if you can't do so yourself because of a disability or illness. This person has the authority to act on your behalf with respect to all matters related to your financial affairs, including signing legal documents and making financial decisions on your behalf.