If you own property and assets or have loved ones who depend upon you to provide for their income or care, you will have an estate when you die and need to make a plan while you are alive - regardless of your estate size. Estate planning is something everyone needs to engage in regardless of age, estate size, or marital status. If you have a bank account, investments, a car, home or other property—you will have an estate with assets upon death. More importantly, if you have a spouse, minor children, or other dependents, an estate plan is critical for protecting their interests and their future income needs.  Why do you need advance directives?

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·         Protect those who depend on you and your income during their lifetime.

·         Name guardians for minor children.

·         Name the family members, loved ones, and organizations you wish to receive your property following your death.

·         Transfer property to your heirs and any organizations you have named in your estate planning documents in a tax-efficient             and expedient manner, with as few legal hurdles as possible.

·         Manage tax exposure.

·         Name your executor and trustee – the individual(s) or institution you appoint to act to administer your estate and                         distributing your property.

·         Avoid probate, the court process for proving that a deceased person’s Will is valid and enforceable.

·         Document the type of care you prefer to receive should you become ill or incapacitated during your lifetime, including any             life-prolonging medical care you do or do not wish to receive.

·         Express your wishes and preferences for funeral arrangements and how related expenses will be paid.

Incapacity planning helps you prepare for unexpected events at every stage of your life from naming a guardian for your minor children, to who will manage your affairs if you are no longer able to do so yourself, to the type of medical and end of life care you will you receive and who will oversee your care.

Certain assets may sit outside of your will. These include life insurance policies or qualified retirement accounts (401(k)s, IRAs, etc.) that have a beneficiary designation, as well as assets or accounts with a pay-on-death (POD) or a transfer-on-death (TOD) designation. These assets transfer directly to the named beneficiaries upon your death and are not subject to probate.

This is why it’s so important to review your account beneficiary designations annually or whenever changes in your life occur. For example, if you divorce and remarry and fail to update the beneficiary designation on your IRA account to your new spouse, your ex-spouse could receive those assets upon your death. Even if your Will and/or trust names your current spouse as the beneficiary or co-trustee, since these assets sit outside of your Will or a trust, they are not governed by those documents.