Types of Estate Plans

1. Wills

A will is a legal document in which the testator (creator of the will) gives directions to an executor or personal representative regarding how to distribute their property to their heirs after they have passed away. Wills often include provisions for appointing the guardianship of a minor child. Wills can also create irrevocable trusts to help provide tax benefits or flexibility in distributing assets to heirs. A SMITH | ASHCRAFT attorney will help you understand your options and give tailored advice regarding your estate plan. A financial power of attorney and advance medical directive is included in a will-based plan.

A will is a foundational document that outlines:

• How your assets will be distributed after your death.
• Guardianship for minor children.
• Executors responsible for carrying out your wishes.

A financial power of attorney and advance medical directive is included in a will-based plan.

2. Trusts

A trust is a legal document that has three parties to it - settlor (creator of the trust), trustee (manager of the trust property), and beneficiary (consumer of the trust property). Trusts can be either revocable (modifiable) or irrevocable (non-modifiable). A Smith Ashcraft attorney will help you understand the differences in the types of trusts, the legal consequences of each type of trust, and direction as to what will work best for your situation.

Trusts provide more control and flexibility over how your assets are managed and distributed.

For most people, creating a trust-based estate plan instead of a will-based estate plan comes down to privacy. A properly created trust will dispose of all property and assets without having to involve the probate court. Trusts can also be set up in ways that have significant tax advantages to the beneficiaries of the trust. 

A trust-based plan includes a pour-over will, which is a last will and testament that gives any property that wasn’t previously transferred to the trust into the trust. Think of it as a safety net to make sure everything goes to the trust. A trust based plan also includes a financial power of attorney and advance medical directive.

Types of trusts include:

• Revocable Living Trusts: Allow you to manage your assets during your lifetime and avoid probate.
• Irrevocable Trusts: Protect assets from creditors and provide tax benefits.
• Special Needs Trusts: Provide for a loved one with disabilities without jeopardizing their government benefits.

3. Power of Attorney

While a will or trust typically contemplates the death of the trustee or testator, a power of attorney (POA) contemplates the incapacity of the principal (creator of the POA). This incapacity could be physical or mental. Essentially, it is a condition that would keep you from being able to conduct your financial affairs as usual. A POA gives your “agent” or “attorney in fact” whatever power one specifically designates. This can include the power to access, open, or close bank accounts, sign contracts, buy/sell property, and in some cases revoke a trust. A POA can authorize an agent immediately or have the agent’s authority “spring” into action upon your incapacity. Given the incredible risk of these powers being abused, it is vital to discuss your options, needs, and wants with a SMITH | ASHCRAFT attorney to ensure that you and your property are protected in case you are incapacitated. 

A power of attorney designates someone to act on your behalf in financial or legal matters if you become unable to do so. Types include:

• General Power of Attorney: Broad authority over financial matters.
• Limited Power of Attorney: Authority limited to specific tasks or periods.

4. Advanced Medical Directives (Living Wills)

An advanced medical directive (AMD) includes two parts - a healthcare power of attorney and a living will. The power of attorney section of an AMD grants your agent or attorney in fact the ability to make medical decisions for you if you are unable to make them yourself. Your living will is the directions you give your medical providers and healthcare agents regarding the kind of care and treatment you want. 

An advance directive outlines your healthcare preferences if you cannot communicate them. This can include:

• Life-sustaining treatment preferences.
• Pain management wishes.
• Organ donation decisions.

5. Beneficiary Designations



Updating beneficiary designations on accounts such as life insurance, retirement plans, and payable-on-death accounts ensures these assets pass directly to your chosen beneficiaries.

Why Choose SMITH | ASHCRAFT?

Estate planning is not one-size-fits-all. Our attorneys take the time to understand your personal and financial circumstances to craft a customized plan that protects your legacy and provides peace of mind for you and your loved ones.



Contact us today to schedule a consultation and start planning for your future.