WHETHER YOU ARE YOUNG AND SINGLE, in a committed relationship, married with children, approaching retirement, or in retirement, you need to have at least a basic estate plan in place. Understandably, most people avoid thinking about death and how their affairs will be handled upon their passing; it is imperative to prepare adequately in advance. Those who remain will thank you. The basic estate plan consists of a will, a power of attorney and a health care directive (sometimes called a living will).

The will is one of the most important documents in the basic estate plan. If you pass away without a will, the State of Minnesota decides how to divide your assets. Your wishes are not taken into account. In your will, you designate which of your assets go to whom, including personal property, real estate (subject to certain limitations) and cash. You can designate family, friends, organizations and charities to take certain assets under your will. Other important choices you make in your will include who to designate as the Personal Representative of your estate. Your Personal Representative will distribute and administer your estate, and handle a court proceeding called probate, should it be necessary.

The Power of Attorney designates who you want to dispose of your property, deal with investments, borrow money, create trusts, and handle other important functions if you are unable to do so yourself, during your lifetime. If you do not have a power of attorney in place, your wishes may not be carried out.

The Health Care Directive dictates who is empowered to make important decisions regarding your health care should you become incapacitated and unable to communicate. You may also direct medical personnel how to care for you in the event you are in terminal condition and cannot express your wishes. You can also designate whether you wish to donate your organs after death.

Probate is the court process through which your will is verified, estate assets are distributed and creditors are paid. Depending upon the size of your estate and whether anyone challenges the validity of your will, the probate process may be short or very lengthy. According to the American Bar Association, the average probate lasts between six and nine months. Sometimes, people utilize trusts in an attempt to avoid the probate process. With a trust, your assets are transferred out of your name and the trust becomes the owner. Other ways of avoiding probate include joint ownership of real property, payable on death bank accounts and beneficiary designations on investments.

Estate planning is something that you should consider engaging in as soon as possible. If you have any further questions, there are many qualified attorneys in the Twin Cities area who are able to assist you.

Andrew S. Miller is an attorney based in the Minneapolis-St. Paul Twin Cities area. He practices in the areas of estate planning, probate and general practice law.  www.AndrewMillerLaw.com