If you've ever purchased life insurance, opened a retirement account, or started putting together an estate plan, you've probably come across the word beneficiary. You may have even named one without giving the decision much thought at the time. A beneficiary is a person or organization designated to receive money, property, or another benefit. For example, if you name your daughter on your life insurance policy, she's the beneficiary who may receive the insurance payout when

Choosing your beneficiaries might seem straightforward. You decide who should receive your money or property, write down their names, and move on to the next part of your estate plan. But there are a few things worth considering before making those decisions. What happens if someone you name dies before you? Should everything be divided equally? What if one person needs more financial support than another? And how do you make sure the beneficiary information on your accounts

Estate planning isn't just about making decisions. It's about making sure those decisions are documented, organized, and able to work together. And that's where things can go wrong. Someone might take the time to prepare a will but forget to review the beneficiaries on their retirement account. Another person might choose someone they trust to handle their affairs without asking whether that person is willing to take on the responsibility. Others create a plan and then leave

Estate planning can feel like a project you need an entire weekend, a stack of paperwork, and a very organized filing cabinet to tackle. That can make it easy to keep putting off, especially when you're not sure where to begin. The good news is that you don't have to figure everything out at once. You can make meaningful progress by gathering a few key pieces of information, identifying the decisions you need to make, and keeping track of what still needs attention. Here's ho

You don't necessarily need to hire an attorney to begin estate planning. Depending on your circumstances, you may be able to prepare some documents yourself, use an online service, or handle much of the preparation before paying a professional to review your plan. The important question isn't simply whether you can do it yourself. It's whether the plan you create will actually work the way you intend it to. For example, you might write a will leaving your home and savings to

Estate planning is deciding what should happen to your property, finances, and personal affairs if you become unable to manage them or when you die. It involves making choices about what you want, putting the appropriate legal arrangements in place, and making sure those arrangements reflect your intentions. Think about everything that makes up your life: the home you live in, the money in your accounts, your retirement savings, the belongings you've collected, and the people

Planning for future medical care means thinking about who should make decisions for you and what kind of care you'd want if you were ever unable to speak for yourself. An advance directive helps you put those wishes in writing before a medical emergency or serious illness occurs. An advance directive is a legal document, or set of documents, used to communicate your healthcare preferences and, in many cases, identify someone who can make medical decisions for you if you can't

A living trust is a legal arrangement you create during your lifetime to hold and manage assets according to your instructions. It's commonly used as part of estate planning to organize property, plan for the possibility of incapacity, and determine how assets should be handled after death. One reason living trusts appeal to people is that you can often create a revocable living trust, serve as its trustee, and continue managing your assets much as you do now. You establish i

A trust is a legal arrangement that allows someone to place assets under the care of a person or organization to manage for the benefit of someone else. Depending on how it's created, a trust can be used to manage money, distribute property, provide for family members, or carry out specific instructions during your lifetime or after your death. Trusts are often associated with wealthy families, but they can serve a variety of purposes. Someone might use a trust to manage an i

A last will and testament is a legal document that explains what you want to happen to your money, property, and belongings after you die. It can also name the person you want to handle your estate and, if you have minor children, identify who you'd want to care for them. You don't have to be wealthy to need a will. A home, a bank account, a vehicle, personal belongings, or family heirlooms are all reasons to think about how your property should be handled. A will gives you a

Thinking about medical care at the end of life isn't always easy, but making your wishes known ahead of time can help you maintain a say in your care if you're ever unable to speak for yourself. A living will is a legal document that records your preferences for certain medical treatments if you become unable to communicate your decisions and meet the conditions specified in the document and applicable law. It's often associated with end-of-life care, particularly situations

A Power of Attorney (POA) is a legal document that allows someone you choose to handle certain matters on your behalf. Depending on the authority you grant, that person may be able to manage your finances, handle property transactions, or make healthcare decisions if you're unable to make them yourself. The person granting the authority is called the principal. The person receiving it is called the agent or attorney-in-fact. Despite the name, your agent doesn't have to be a l