Sort out your estate plans.

Over the years, we've all seen or heard about families fighting in court over estates of wealthy celebrities, such as singer Michael Jackson or baseball Hall of Famer Ted Williams. But the truth is, these battles can happen in anyone's family.

Sometimes people mistakenly believe that estate planning is only for the rich and famous. That belief couldn't be further from the truth.

One key to any well-established plan is the same for everyone: Have the right paperwork that's up to date. You may need the following five important documents as part of your plan.

Five documents you may need

• A will allows you to:
  
  • Distribute assets and property in accordance with your wishes.
  • Designate an executor of your estate, such as a trusted relative, friend or corporate executor, saving the cost of a court-appointed attorney.
  • Choose a guardian for your minor children.
• A living will generally allows you to express your wishes with respect to certain types of medical treatment, such as life support if you're terminally ill.
• A durable power of attorney for finances designates a person you trust to make financial decisions and pay your bills if you become incapacitated.
• A medical power of attorney authorizes a person to make medical decisions on your behalf, including wishes expressed in your living will.
• A letter of instruction is an informal, nonlegal document that helps surviving family members put your affairs in order, from making funeral arrangements to canceling credit card accounts and paying other bills. It even can include personal thoughts and instructions, such as how to care for a prized orchid collection or what's in a safe deposit box.

Once these basic documents are in place, you can have the peace of mind that comes with knowing your affairs are in order. As time passes and your life changes, you need to keep them up to date.

It's not one and done when it comes to estate planning. Your documents should be reviewed at least every three to five years to ensure they still reflect your wishes and current laws.

Consider establishing a trust.

Beyond the basic documents, establishing a trust may be the next major step in your overall estate plan. Here are a few situations where a trust may be appropriate:

• Blended families. Trusts could help ensure that your assets go to those you intend.
• Minor children. For example, a testamentary trust as part of your will can specify when a child is to receive an inheritance and how the money is to be spent. Trusts also can help provide for children with special needs by paying for expenses not covered by government programs.
• Real estate in more than one state. A trust can help avoid the attorney and court fees associated with going through probate in each state where you own property.
• Life insurance. Trusts can hold life insurance intended to pay estate taxes, equalize the value of inheritances for business owners or create liquidity for other purposes.

Where to go for help

Consult an attorney. While many estate planning documents may be available online, consider hiring an attorney experienced in estate planning to prepare customized documents or at least review online forms you're working to complete.

Active-duty service members and their dependents as well as retired or disabled service members and their dependents may be eligible to take advantage of no-cost legal assistance. Commonly known as JAG, this service can include estate planning. To find a general legal services provider within the continental United States, visit the U.S. Armed Forces Legal Assistance Locator.^{See note1}

For more education or to find a local attorney who specializes in estate planning, visit the American College of Trust and Estate Counsel.^{See note1}