# Estate Planning

*Everyday Money — Finicade finance glossary*

Estate planning is arranging in advance how your assets, dependants and medical decisions are handled if you die or lose capacity. The minimum viable version is four documents: a will, a durable power of attorney, a healthcare directive, and up-to-date beneficiary designations. Trusts are added mainly to avoid probate, control timing for young beneficiaries, or manage estate tax. The most common failure isn't complexity, it's staleness — a beneficiary form naming an ex-spouse overrides a newer will.

**Also known as:** succession planning, legacy planning

**Related terms:** [Will](https://finicade.com/glossary/will), [Power of Attorney](https://finicade.com/glossary/power-of-attorney), [Beneficiary](https://finicade.com/glossary/beneficiary), [Probate](https://finicade.com/glossary/probate), [Trust](https://finicade.com/glossary/trust), [Estate Tax](https://finicade.com/glossary/estate-tax)

Source: https://finicade.com/glossary/estate-planning