A complete plan includes: a will or living trust, durable power of attorney for finances, healthcare proxy (medical power of attorney), and an advance directive (living will). Those with significant assets or blended families may also benefit from revocable living trusts, irrevocable trusts, or beneficiary designation reviews on retirement accounts and life insurance.
Review every three to five years, or immediately after major life events: marriage, divorce, death of a beneficiary or named executor, significant change in assets, relocation to a different state, or a new diagnosis that affects your long-term care needs. Outdated documents can create as many problems as having none.
It depends on your situation. A living trust avoids probate (which can take months and cost significant fees), provides seamless management if you become incapacitated, and keeps asset distribution private. A will is simpler and less expensive to create but goes through probate. An elder law attorney can recommend the right structure for your assets and state.
For simple estates — a single person or couple with straightforward assets and no complex family situations — online legal services can produce valid basic documents for a few hundred dollars. However, mistakes in estate planning documents can be costly and difficult to discover until it is too late. Professional review is strongly recommended for any estate with real estate, business interests, a large retirement account, or a blended family.
