Estate planning can help you transfer wealth to beneficiaries while minimizing taxes. Estate planning tools include last wills, living trusts, powers of attorney and more. These documents can assist you in providing for your spouse, your children, your relatives, your pets, your favorite charities and any other individuals or organizations you so choose.

Living trusts, last wills and other estate planning tools are legally binding documents that must conform to the laws of your state. In most cases, having estate lawyers or trust attorneys guide you through the process is a good idea. In some instances, you may be able to craft simple last wills and living trusts using a variety of online tools and software programs.

Estate planning tools offer many advantages, including:

1. Last wills allow you to designate how you would like your assets distributed and lets you name guardians for your minor children.
2. Living wills — sometimes called healthcare directives — allow you to express your wishes about end-of-life medical care.
3. Living trusts allow you to transfer property during your lifetime or after your death to designated parties.

Action Steps
The best contacts and resources to help you get it done

Find estate lawyers and trust attorneys

Living trusts, last wills and living wills are legal documents that require careful preparation. Having estate lawyers or trust attorneys prepare your estate planning documents can cost upwards of $1,000 but can give you peace of mind.

I recommend: Search for estate lawyers in your state at Martindale-Hubbell or at Lawyers.com. Look for experts on estate planning at Business.com.

Create living trusts with simple online tools

Crafting living trusts doesn't have to take a lot of time or cost a lot of money. Several online legal sources will do it for you for less.

I recommend: At LegalZoom.com, you simply answer a few questions online and they will create your last will, living will or living trust. For less than $200 at LivingTrustsontheWeb.com, you can create attorney-quality, state specific living trusts and living wills on your own computer. View a demo before you pay.

Legal websites can help draft last wills and living wills

The language that last wills and living wills must include typically depends on your state of residence. Look for legal websites that offer state-specific templates for these estate planning tools.

I recommend: At FindLegalForms.com, you can find a number of state-specific templates for last wills and living wills for singles, married couples, divorced couples and widowed individuals with or without minor children. All you need to do is answer a questionnaire to take advantage of the LegacyWriter complete estate plan, which includes a last will and testament, a living will, a power of attorney and a medical power of attorney. A last will or living will takes just minutes to prepare at Make-Your-Will.com.

Use estate planning software to create your documents

If you prefer the privacy of creating your own estate planning tools, like a living trust or a last will, consider purchasing easy-to-use estate planning software.

I recommend: Quicken WillMaker Plus 2008 is estate planning software that includes 50 forms to help you last wills, living wills and living trusts. National LawForms offers estate planning software to help you create single or joint living trusts. Search the Business.com directory for more wills, trusts and estate software solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Estate planning isn't for seniors only. It's a good idea to have a living will, a last will and a living trust at any age.
• •  Living trusts can be revocable - meaning you can terminate or modify them at any time - or irrevocable - meaning they can never be altered for any reason.
• •  Probate can tie up an estate for several years and eat up a portion of the value of an estate. Living trusts are not subject to probate; last wills are.
• •  When prepared accurately, a living trust can help you avoid certain estate taxes.