Time for Retirement: Planning Out Your Estate

As you devise your retirement, one of the aspects that requires a significant amount of attention is estate planning. The more consideration you devote toward the planning of your estate; the more comfortable you can be in knowing that your loved ones will receive exactly what you've worked so hard to put in place for them.

Estate planning involves the following measures: a traditional will, a living will, the assignment of power of attorney, and in some situations, the establishment of a trust.

I. A Traditional Will:

Nick Fagan from EzineArticles.com defines a traditional will as:

"A will is a legal form that will ensure your estate gets divided how you desire. The person who owns the estate (money and belongings) is called the 'testator'. Without a will your estate is wide open to conflicts, problems, and lawsuits. For example your relatives may have a huge dispute over the property, which will lead to lengthy court proceedings and legal fees for lawyers, etc. Although there are many benefits to having a last will and testament, the law strictly views the document as a testator regulating the rights of others over his property upon death. The traditional will is the last will and testament, which is sometimes called a testamentary will. This will covers the disposition of personal property upon death and may also cover the testators wishes concerning who becomes the guardian over a minor child. This document is legally binding."

II. A Living Will:

Rebecca Berlin from AllLaw.com defines a living will as:

"A living will is a legal document that a person uses to make known his or her wishes regarding life prolonging medical treatments. It can also be referred to as an advance directive, health care directive, or a physician's directive. A living will should not be confused with a living trust, which is a mechanism for holding and distributing a person's assets to avoid probate. It is important to have a living will as it informs your health care providers and your family about your desires for medical treatment in the event you are not able to speak for yourself."

III. Power of Attorney: