The goal of estate planning is to memorialize how a person would like their financial affairs, assets, and other important decisions to be managed should the person become incapacitated or upon death. Estate Planning Tools include:
Will
- A legally enforceable document that allows a person to leave instructions for what happens to assets upon death and to whom said assets pass. In the absence of a Will, a Court will determine how assets are distributed.
Trust
- A legally created entity that can hold assets. A trust is often used as an estate planning tool to protect assets and to specify instructions on how said assets transfer upon the grantor's death.
Power of Attorney - A legal instrument that can designate a person to act and make decisions on behalf of someone else.