A good estate plan will take care of (i) who gets your assets when you pass; (ii) who you entrust to make medical and legal decisions for you if you are incapacitated; (iii) simplifying the process for your family after you are gone; and (iv) if applicable, protecting assets from estate taxes and/or the costs of assisted living for you and your spouse.
These are the key documents that can accomplish these goals:
A last will and testament, which names your personal representative (often known as an executor) and specifies who should receive what.
A health care proxy, which designates a person you trust to make medical decisions for you if your doctor says you are unable to do so yourself.
A durable power of attorney, which designates a person you trust to make financial and legal decisions if you are unable to do so yourself.
One or more trusts, which allow assets to pass without going to probate court, and in appropriate circumstances can protect assets from estate taxes or the costs of assisted living.