Disclaimer: Estate-planning laws vary by jurisdiction. This article is for general informational purposes and is not legal, financial, or tax advice.

What Is Estate Planning?

Estate planning involves making arrangements concerning a person's property, finances, and certain decisions that may need to be addressed during incapacity or after death.

Wills

A will can allow a person to communicate how certain assets should be distributed after death, subject to applicable law. A properly executed will can also address matters such as the appointment of guardians for minor children where permitted.

Beneficiary Designations

Certain financial accounts and insurance policies may pass according to beneficiary designations rather than the instructions in a will. Keeping beneficiary information current can therefore be important.

Powers of Attorney

Depending on local law, a power of attorney can allow another person to act on your behalf in specified financial or legal matters. The scope and legal effect depend on the document and jurisdiction.

Review Your Plan Regularly

Major life events such as marriage, divorce, the birth of a child, a significant change in assets, or moving to another jurisdiction may create a reason to review an estate plan.

Conclusion

Estate planning can help people organize important decisions before they become urgent. A qualified estate-planning professional can explain the rules that apply to your particular circumstances.