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plan should include: Will, Living Will, Durable Medical (Healthcare) Power-of-Attorney, and General Durable Power-of-Attorney (consider the "Springing" type). In some cases, you may also need to consider a Revocable Living Trust-but these should be used sparingly.

The Cornerstone of your estate plan, your Will, is vital and necessary 100% of the time. How complicated it is will vary dramatically by situation. There is a common misconception that you don't need a Will if: You own everything jointly, or you have a Living Trust. These are both wrong, and are sure to cause great problems for the loved ones of those who listen.

A document growing more and more common is the Durable Medical (Healthcare) Power-Of-Attorney (MPOA). Some States also recognize what is called a Medical or Healthcare Surrogate, the technical differences are slight but should be investigated in your own State. This document gives the holder (someone you trust a great deal) the power and responsibility to made decisions on your medical treatment in the event you should be unable to do so.

A Living Will is simple your written instructions on what measures you wish to be taken to save or prolong your life in the most serious cases. This document picks up where the MPOA leaves off. These became big news with Terri Schiavo. If this case proves nothing else, it shows the importance of not only having a living will, but making its contents (directions) well know among your loved ones.

General Durable Power-of-Attorney (POA) is the document that grants power to another to make decision on your behalf. It demands the POA make the decision (s)he feels you would make in the same situation if possible. Again, this is a person you should trust completely. This legal arrangement is most often used to handle financial affairs in your place. The word "Durable" is important as that indicates it is still active when you are not in a position to revoke it (comma, Alzheimer's, etc), precisely the time you need it the most. The most common form of this document is often referred to as "Springing". That means the power does not come into effect until you are not able to make the decision on your own-the basis for its "Springing" is often spelled out in the document, but some States also provide statutory guidelines.

Beyond these four, there are thousands of possibilities and tools available to assist you match your people, priorities, and property together in a way that meets your individual goals and objectives.

As mentioned near the beginning, this is akin to a "journey of a thousand miles"; not a quick walk or even a marathon...1000 miles. That means, once you have effectively matched your "P's" the best way possible, set it aside and go back to living your life to the fullest. However, you have to pull out the COMPLETE plan every year or with major life events (birth, death, divorce, marriage, etc.). As life changes, or even as it just 'journeys on' your "Five P's" will likely change. With that you may need to adjust your estate plan accordingly.

But it all starts with "a single step." You have a map, it is up to you to get moving.

Learn more about this author, Christopher Mcgown.
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