Don't be misled by the word "estate."

We should talk about the word "estate." I think it tends to mislead a lot of people. They figure "estate planning is not for me," because the first thing they think of when they think of the word "estate" is of somebody living in a big mansion, somebody who is very wealthy.  I tell people to think of the word "estate" as simply being equivalent to the term "stuff." Everybody has "stuff." Your stuff could include, checking accounts, savings accounts of any sort, jewelry, clothing, stocks bonds, etc. 

Estate planning is simply planning what to do with your stuff, after you die and if you are no longer able to handle your own affairs. First, ask yourself who will be in charge of your stuff if something were to happen to you.  You need to empower people to act on your behalf in case something ever happens, whether it is a car accident, dementia, Alzheimer's disease, a coma.  If something happens where you're no longer able to handle your affairs, you want to make sure that you give people the legal tools that they need to be able to assist you the way you want things done. Second, after you pass away you still get to control where you stuff goes, to whom it goes, and in what manner.  So by preparing proper legal documents in advance, by creating this "estate plan" with all your "stuff," you get to control a lot more of what happens rather than just leaving things to chance.