A will is a legal document that sets forth our wishes regarding the distribution of your property and the care of any minor children after your death.  If you die without a will, those wishes may not be carried out.  Further, your heirs may end up spending additional time, money, and emotional energy to settle your affairs after you're gone.

A power of attorney is a legal authorization that gives the agent or attorney-in-fact the authority to act on behalf of an individual referred to as the principal.  The agent may be give a broad or limited authority to make decisions about the principal's property, finances, investments or medical care.

An advance healthcare directive, or healthcare power of attorney, gives another person — such as your spouse or child — the power to make healthcare decisions on your behalf if you are mentally or physically incapacitated or unable to communicate your wishes.

A trust establishes a legal entity that allows you as grantor to place specific parameters around the distribution of your assets. A trustee is appointed to manage and control property according to your written directions for the benefit of your beneficiaries.

When someone dies and the value of their estate is calculated, only the amount that's more than the exemption amount of $13.6m (2024) is subject to the estate tax (up to 40%)  unless otherwise excluded.  A married couple's combined exemption is $27.2m.

A financial gift can involve specific tax implications for the parties involved, although this tends to mainly impact the person or party who provided the gift.   The use of annual and life time gift exclusions will help to avoid the gift from taxed by the IRS.