Key Estate Planning Documents

Durable power of attorney: A durable power of attorney is a document that gives someone else the authority to make decisions on your behalf if you should become incapacitated--that is, injured or sick and unable to handle your own affairs. Typically, estate planning attorneys recommend drawing up two such documents: one for health care decisions and one for financial decisions.

Living trust: A living trust is a document that is designed to avoid probate, the court process that otherwise is used to settle an estate after death. Living trusts by themselves do not avoid or reduce estate taxes.

Living will: A document that instructs doctors what life-saving measures you do and don’t want taken in the event you are terminally ill.

Will: A will is a document that specifies who gets what after you die. Wills can also be used to name a guardian to should raise your minor children. Estate planning experts say everyone should have a will, including those who have living trusts.