Your estate is all property owned by you at the time of your death. It can include real estate, life insurance, bank accounts, and personal property—like your car. A comprehensive estate plan can ensure that your property goes where you want it to go and that your loved ones can jump through as few legal hoops as possible. You can also designate guardians for your children and representatives to act for you in financial and medical matters if you cannot act for yourself. Many estate plans also include advance medical or healthcare directives through which you can specify the sort of end-of-life treatment you would like to receive.
Will
A will is the way you declare your wishes regarding the distribution of your property when you die.
Trust
You can create a trust instead of, or in addition to, a will. A trust is an agreement between you and another party called the trustee. The agreement requires the trustee to manage property and assets for a third party, called the beneficiary.
Power of Attorney
Power of attorney is a written authorization to act for another person. You may want to consider including a durable power of attorney for your healthcare and finances in your estate plan, as it will remain valid even if you become incapacitated.
Healthcare
When you create a power of attorney for healthcare (also called a healthcare proxy), you designate a person who will make medical decisions for you in an emergency.