4 Elements of an Estate Strategy

Having an estate strategy puts you in charge of life's important decisions. Here are four elements to consider.

Write a "cheat sheet" letter

A "cheat sheet" is not a legal document, but a letter that can help your beneficiaries locate important papers and outline your financial wishes.

Set up a living will

Living wills, also known as advance directives, address the medical care that you want to receive. Typically, living wills address whether you desire life-saving medical measures, but they can address other medical wishes.

Think about a Living Trust

Living trusts are created and funded by assets you put in them while you're alive. The assets in the trust then pass to a beneficiary after your death.

Establish Powers of Attorney

A power of attorney lets another person execute personal and legal matters on your behalf. A medical power of attorney designates who will make health care decisions for you in an emergency.

Preparing your estate is part of a sound financial strategy. If it's been a while since you've looked at your estate strategy, or had a life change such as marriage or divorce, it may be time for a review.