Estate Planning

WILL A document that outlines your final wishes. It can be as simple as a �sweetheart will� in which one spouse leaves everything to the other, or as complex as one that makes considerations for charities, non-relatives, or trusts. A guardianship provision denotes your choice of a guardian for your minor children.

LIVING WILL Also called a healthcare directive, a living will serves as an outline of your preferences regarding medical treatment and healthcare decisions. It may be used by healthcare professionals or by your family if you become incapacitated. The document also allows you to appoint someone to make decisions on your behalf.

POWER OF ATTORNEY Similar to a living will, a power of attorney appoints another individual to act on your behalf. It is important to choose the person wisely, and to consider carefully the amount of power you wish him or her to have.

TRUST Trusts may be used to reduce estate taxes, provide for minor or special-needs children in the event of a parent�s death, or as a vehicle to reposition assets.

Estate planning is complex. Because it is not a one-size-fits-all kind of process, it�s often worth hiring a reasonably priced attorney to have your documents created or reviewed.

For more financial help and advice download the 2011 Kentucky Living Financial Planning Guide.