Estate planning is the process of caring for yourself and your assets while you are living and planning for the orderly transfer of assets to other persons and organizations– both during your life and afterward.

Estate planning involves making legal decisions that direct the distribution of your financial assets to those people and organizations that mean the most to you. 

A good estate plan addresses many aspects of your current situation and how to thrive in the years to come. 

Creating or updating your estate plan is among the most important things you can do to ensure your wishes are met. A thorough estate plan: 

  • Ensures that the wealth accumulated over your lifetime is distributed precisely where and when you want it to go. If you don't have a will or living trust, the state will impose a distribution plan for you, which may or may not match your wishes.
  • Gives directions to follow if you become incapacitated and can't make decisions for yourself.
  • Organizes your affairs and designates who will handle them when you are gone.
  • Appoints a guardian for minor-aged children.
  • Provides for any special needs your loved ones may have.
  • Minimizes possible estate taxes and probate fees.
  • Specifies the type of funeral arrangements you would like.
  • Remembers and provides for friends and organizations you care about beyond the default state distribution process.

Having an estate plan will make things easier for your family should anything happen to you, as they will know what you want to happen and provide them the means to follow your wishes. Consider the planning you do now to be a future gift to your loved ones.

Estate planning entails making financial decisions ahead of time to provide for yourself and your loved ones and the causes you've cared about during your lifetime. Planning upfront and deciding your charitable giving legacy offers great satisfaction and peace of mind. 

Show more detailsHide details

The Key Elements of an Estate Plan

Wills & Trusts

  • Wills are generally typed, dated, and signed by you and two witnesses. States differ regarding the requirements for a valid will and whether a handwritten one, with or without witnesses, is legally binding. Probate courts oversee the administration of wills at the time of death to carry out your instructions. Probate fees are applicable and paid to the courts to administer an estate. All documents and proceedings are public records
  • Revocable Living Trusts referred to as a "living trust" or "RLT," replaces a will as the primary legal document directing the distribution of your property according to your wishes. A living trust requires you to transfer your property into the trust for it to be effective. A living trust allows assets to pass to heirs outside the probate process, potentially saving probate fees and keeping your affairs private. The trust is created while you are living, and the power to change or revoke it can be retained. Most often, people serve as the trustee of their revocable living trust. If a living trust is recommended, your estate planning lawyer will also suggest a will as a backup document to transfer any assets not included in your trust at the time of your death.
  • Beneficiary Designations maintained by policy administrators direct the distribution of IRA, annuities, life insurance, and other assets upon your death. You can also request a beneficiary designation for a bank or investment account. Beneficiary designations can significantly impact how your estate is distributed and should be part of any coordinated plan, as your will and living trust do not apply to these important assets.

Powers of Attorney

  • Power of Attorney (POA) is a legal document granting someone you trust the ability to act on your behalf for various potential transactions and financial responsibilities. You decide when the POA will become effective and the extent of the authority granted. A POA is only effective during your lifetime and automatically terminates at death.
  • Health Care Power of Attorney (HCPOA) for health care decisions is a document that appoints someone to make decisions for you regarding medical treatment if you cannot make these decisions for yourself. In addition, it allows you to specify who makes critical treatment decisions. 
  • Physician’s Order for Life Sustaining Treatment (POLST) is a legal document describing what healthcare treatment you want in case of an emergency. You work with your doctor to document your wishes regarding resuscitation and other life-sustaining procedures.

Managing & Distributing Your Wealth

Estate planning is the process of managing and distributing your wealth according to your wishes to provide for loved ones, your church, and other nonprofit ministries that mean the most to you. 

If you would like to support TMF through your will or living trust, click here for sample bequest wording you can share with your attorney. Or consider a gift by beneficiary designation, also known as a "bequest substitute." It has many of the same advantages as a bequest while being among the most tax-wise ways to give.