This legally enforceable document lays out your end-of-life wishes, such as arrangements for a memorial or funeral. It also explains the payment of your debts, how your financial accounts should be closed, and the distribution of your finances or assets. A will may also include information about guardianship of your children (if they are minors) or pets. Without estate planning, the distribution of your assets may have to be administered through an extensive court process.

A beneficiary designation names an estate or persons who will inherit specific sections of your assets once you pass on. It's critical to have designations on insurance policies, specific types of investments, and retirement accounts. Beneficiary designations address external accounts while a will explains how your assets are to be transferred after your death. It allows the automatic transfer of ownership of such externally held accounts, bypassing the probate process in most cases.

This legal document distributes one's belongings, property, and assets after death. A revocable living trust transfers ownership of particular assets to a trust. Once you set up said trust, you can manage its assets as long you identify a successor to take over for you in the future. Unlike irrevocable trusts, revocable living trusts allow you to include new beneficiaries or change any trust detail for as long as you live.

This document outlines your wishes should the time come that others must make medical decisions for you. It addresses several medical scenarios, such as resuscitation orders or organ donation wishes. Laying these out in advance can bring great security and comfort to an ailing family and eliminate disagreement.

This instrument appoints an individual you trust to take charge of your medical, financial, and other critical decisions on your behalf if you're not in a position to do so. Although the most common is the general POA, several other types exist. A general POA can run your business and make gifts on your behalf. After designating your POA, outline the actions and decisions you wish to entrust them with, which you can notarize in a legal form.

Although estate planning is critical, especially in the event of one's demise or incapacitation, 30% of adult Americans cite a lack of sufficient assets to bequeath to anyone as the reason for not having a will, according to LegalZoom. For more information about the specifics of estate planning or to schedule a consultation, contact John J. Homola Attorney and Counselor at Law today.