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Basic documents everyone should have:
People who you list as "who to call in an emergency" should know where you keep these documents.

  1. Will - How to disburse property to heirs after your death.
    If you have a simple estate you can do it yourself using one of the online services (see below).
    More complicated wills require an estate planning attorney.
    There are rules for inheriting IRAs you need to be aware of/
  2. Living Will / Advanced Medical Directives, Instructive Directive (NJ) - Types of medical treatment you would like or not like in certain situations.
    You can do it yourself.
    You will need two witnesses and/or a notary republic to witness your signature. The attorney who prepared my living will also signed it. It varies by state. See:
    Living Wills: State Laws - FindLaw
    Download Your State's Advance Directives - CaringInfo
  3. Durable power of attorney (POA):
    A power of attorney is a legal document that gives someone (designated attorney-in-fact) you choose the power to act in your place. There are usually two:
    a. Health care (Proxy Directive in NJ)
    b. Finances

    A Durable Power of Attorney can make it very broad (General Power of Attorney) or can limit the Durable Power of Attorney to certain acts (Limited Power of Attorney)

    Any competent person 18 years of age and older can serve as an Attorney-in-Fact. Certain financial institutions can also serve.

    In most states, your signature on your power of attorney must be notarized, or at least two adults, unrelated to you and each other, and who are not named as the attorney-in-fact, must witness you sign the power of attorney.
    The person(s) you are naming as Attorney-in-Fact must sign also acknowledging they have read it and agree.

    Some recommend sending a copy to financial institutions where you have accounts.

    At ElderLawAnswers they say,
    "There are many do-it-yourself power of attorney forms available; however, it is a good idea to have an attorney draft the form for you. There are many issues to consider and one size does not fit all."

    2 and 3a are combined in some states. In California, it's called an advance health care directive.
    Robert Wood Johnson Hospital in New Jersey calls it an Advance Directive.
    I have 4 documents done in 1997 in New Jersey; A will, A Living Will, Durable Powers of Attorney for Health Care, & Durable Power of Attorney.

    See How to Use a Durable Power of Attorney

  4. Living trust (also known as a revocable or inter vivos trust)
    The primary function is typically to avoid probate, which will vary by state. It was not necessary in New Jersey but is recommended in California.
    You can and and remove assets in a trust as needed.
    Probate can take a long time and the living trust provides for a quicker, transfer of property to those who need it.
  5. Letter of instruction - A letter of instruction (also called a testamentary letter or side letter) is an informal, nonlegal document that generally accompanies your will and is used to express your personal thoughts and directions regarding what is in the will (or about other things, such as your burial wishes or where to locate other documents).

Where to store your documents:
If you get an attorney to do your will and powers of attorney, they may create two signed copies and keep one, while you will get the other.
Options for storage are:

Where to get your documents prepared:
If you have a complicated estate you should get an estate planning attorney to do it for you.

For simple estates there are several online sources. Rocket Lawyer was listed as best or one of the best in a small sample of review sites I looked at.
Rocket Lawyer
Legal Zoom. A little more expensive than most.
Quicken Will Maker (NOLO)
Global Wills
Others: LegacyWriter, Do It Yourself Documents - Free Generic Last Will & Testament, Suze Orman's Will and Trust Kit, Willing

If you have a complicated estate in excess of $1 million with things like a blended family, income property, IRAs, stocks, etc. a will can cost several thousand dollars.
Putting Online Wills to the Test - WSJ
Wills 2016 - Reviewed and Ranked
The Best Software for Wills in 2016 | Top Ten Reviews

If your estate is several million dollars or more you may need more complicated directions to minimize estate taxes (Federal and State) or handle special situations like splitting assets with children from a previous marriage.
This is usually done with trusts:
Trusts can be set up under the couples' Last Will and Testaments or as revocable Living Trusts.
With an irrevocable trust once you set it up it cannot be changed.
An revocable trust can be changed after it is set up.

Some potential issues:
Keep your beneficiaries up to date. They override trusts and wills.
Retirement accounts and insurance policies are governed by the beneficiary form you filled out when you opened the account or bought the policy. These assets do not flow through your trust or your will.

You could be giving your kids too much too soon. But with many trusts, by the time you find that out it is too late to make any changes.

You should consider delaying larger portions of their children's inheritance, giving them more when they are older and allowing the trustee to have more discretion in distributing their money should they need it sooner.

Estate Tax
In 2016 the federal estate tax exemption was $5,450,000.
Trump wants to repeal the federal estate tax, while Hillary Clinton wants to lower the exemption to $3.5 million.
See more on estate taxes in the estate planning page.
Plan Your Estate: Denis Clifford:

Wills, Estates, and Trusts - Table of Contents |
  Intestacy, Wills, Trusts, Estates, and Probate--Overview |
  AB Living Trusts and AB Disclaimer Trusts
  Legal Documents Checklist
Key Legal Documents Documents You Need

last updated 1 Aug 2016