If you die without any kind of estate plan, your property may be subject to default rules known as intestate laws of succession. A probate court will use these default rules to give your property away to certain heirs and with certain shares that may be very different from your wishes. If you have any children who are minors and they do not have a surviving parent, then a probate court will appoint a guardian for them. Some of the most common estate planning tools are:

Will: A Will (also referred to as a Last Will & Testament) is a critical part of every estate plan. Although a Will still has to go through probate court, a valid Will overcomes the default rules so that your property is given away in accordance with your wishes (with some exceptions). A valid Will also ensures that your minor children are cared for by a guardian whom you appointed (known as a testamentary guardian).

Trust: A Trust is a more sophisticated estate planning tool. It is useful when you want someone (a trustee) to oversee and manage property on behalf of your beneficiaries, such as a child who might otherwise frivolously spend his or her share. A Revocable Living Trust enables you, as the creator of the Trust, to add and remove property from the Trust during your lifetime. Any property in the Trust at the time of your death is managed by the successor trustee for the beneficiaries. A Revocable Living Trust is usually combined with a Will (known as a pour-over Will) which “pours” probate property into the Trust. A Trust requires more work upfront to move your property into it (your home, your bank accounts, etc.) but the advantage is that property in the Trust does not have to go through probate, which can be especially cumbersome when you own real estate in different states.

Power of Attorney: A Durable Financial Power of Attorney empowers your most trusted loved ones to make financial decisions on your behalf. This is useful if you lose the ability to manage your financial affairs due to deteriorating health or mental capacity.

Advanced Directive: A Healthcare Advanced Directive enables you to indicate your healthcare decisions and empowers your most trusted loved ones to make healthcare decisions on your behalf. This is useful if you lose the ability to make your own healthcare decisions due to deteriorating health or mental capacity.