Contrary to popular belief, estate planning involves much more than just drawing up a Will. Your plan should also include changing your Will periodically to accommodate changes to your family structure (i.e., marriage, divorce, adoption, etc.), changes to your assets (acquiring new assets, selling off existing assets, etc.), changes to how your assets will be distributed after your death, and changes to probate and other laws pertaining to the distribution of your assets. While distribution of your assets upon your death is an important part of your estate plan, effectively planning your estate involves much more than that. Other issues to consider in your estate plan include:

• Developing a plan to minimize estate tax liability and avoid probate as much as possible, as well as preserve and increase the value of your estate so you can pass as much of your wealth as possible to your intended heirs.
• Planning on who will handle your financial, personal, business, and legal affairs if you ever become incapacitated, as well as how your affairs will be handled.
• Planning on how children and other loved ones will be provided for in the event you are no longer able to provide for them due to your incapacitation or death.
• Drafting and periodically updating your final arrangements document to express your death and burial preferences, as well as setting up a trust fund and/or pre-need plan to pay for them.
• Administration of your estate after your death.

What is a Power of Attorney?
When a person becomes incapacitated, the government or the court often steps in and appoints someone to represent and make legal decisions that the person would have to take. One of the ways to avoid government or court intervention, and the appointment of a stranger to act as your guardian, is to use a Power of Attorney. A Power of Attorney is a written document stating that one person gives to another the full power and authority to represent him or her. It must be signed by both the attorney and the principal, witnessed by two people, and notarized.

What is a Durable Power of Attorney?
A durable power of attorney is a form of agency. The person who gives the power is the principal, and the person who receives the power is the attorney or agent. Durable in this context means that the agent`s power will survive the principal`s incapacity or disability. As a result, a Durable Power of Attorney can be used as an alternative to guardianship in some states under certain circumstances, provided the principal executed the document before losing capacity. There are two types of Durable Power of Attorney: Financial Durable Power of Attorney and Healthcare Power of Attorney. The Financial Durable Power of Attorney is also known as a General Durable Power of Attorney. The agent`s authority to act for the principal under a Financial Durable Power of Attorney is based on the powers that the principal gives to the agent. Whether broad, general, or limited, the specific powers given to the agent are completely determined by the principal. Among other things, the principal may delegate to the agent in the Financial Durable Power of Attorney the authority to make deposits and withdrawals from his/her checking account, to file his/her tax returns, and to sell his/her home. However, there are a few powers that the principal may not delegate. For example, the agent cannot prepare a Will, vote, or seek a divorce on the principal`s behalf.

A Healthcare Power of Attorney specifically grants authority to the agent to make decisions about and relating to medical treatment. For example, the agent may consent to treatment, refuse to consent to treatment, or withdraw consent to treatment. In addition to these decisions directly about medical treatment, the agent may make all arrangements at any hospital or nursing care facility, employ or discharge care personnel, request, receive, and review any information about the personal affairs or physical or mental health of the principal.

As laws vary from state to state, it would be in your best interest to consult an Estate Planning attorney in your area if you want more information about Powers of Attorneys.