By Ryan Dennin
Many people think that estate planning starts and ends with a will. Though a will may be a major function in estate planning it is important to realize there are many other elements to consider. Taking into account the financial aspect is one key component but so are things like taxes, medical, and business purposes if a small business is owned. The financial aspect of estate planning can be sometimes written in the form of a trust. A trust isn't just for wealthy individuals. A trust can help your family ensure a speedy transfer of the estate, and avoid a public, lengthy court situation. As for the medical element, a "living will" is something that dictates what should happen to you if you no longer have the capacity to make decisions. This is important for example if you don't believe in certain practices of medicine or more commonly, if you prefer not to draw out a terminal illness. Other elements such as power of attorney help ensure that there is someone you trust handling these financial affairs. Elements such as naming beneficiaries early are important as well. This was there is an automatic transfer of funds to a persons beneficiary on things like bank accounts, IRA's, investments etc. This is just another element that ensures a smooth process. Most important it is crucial that people understand having an estate plan isn't just for the sick and dying and isn't just for the wealthy. Certain elements of the estate planning process should be at everyone top of mind to complete ASAP.
Sources:
http://en.wikipedia.org/wiki/Advance_health_care_directive
http://money.cnn.com/magazines/moneymag/money101/lesson21/
http://ezinearticles.com/?Understand-the-Key-Elements-of-Estate-Planning&id=1808060
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