What is estate planning?
ACS Answer
Organizing your future starts with building an estate plan, which outlines what will happen to your assets when you die or if a time comes when you cannot make decision about your finances. Your "estate" includes all that you own: your house, car, and jewelry. If you don't make a plan for yourself, the state will step in and make decisions about your estate.
The foundation of estate planning is having the right documents in place. At a minimum, everyone needs the following:
- a will
- a durable power of attorney
- a health care proxy or advance directive
- a living will (possibly)
A Will. Everyone needs a will. Your will directs how and to whom your assets will be distributed. You also use your will to name a guardian for any minor children and their assets.
Durable Power of Attorney. A durable power of attorney allows you to name who will handle your finances if you are unable to handle them yourself.
Health Care Proxy (Advance Directive). The health care proxy or advance directive allows you to name a person who will make decisions about your health care if you are unable to make them yourself.
Living Will. The living will allows you to specify the types of medical treatment you would want or not want if you are unable to communicate these choices. Make your doctor aware of your wishes.
If possible, discuss your estate planning needs with an estate attorney. He or she can draw up the documents. Also, an attorney can advise you on using trusts to protect your assets from taxes and probate expenses and to take care of minor children.
If your finances are simple, the documents could be drafted at a legal clinic or nonprofit group. Call the American Cancer Society, (800) ACS-2345, for names of organizations that can help you.
After your documents are in place, it's a good idea to review them from time to time. Check to make sure the information is correct and still reflects your wishes.
Related Resources
The American Cancer Society can provide several booklets about financial issues and cancer, upon request:
- Costs of Cancer
- Financial Guidance for Cancer Survivors and Their Families
- Financial Guidance for Those With Concerns About Cancer
- Medical Insurance and Financial Assistance for the Caner Patient (also available in Spanish)
Find books that cover this and other cancer topics at the American Cancer Society bookstore.
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