• Will—This is a legally executed document that outlines and directs how and to whom a person wants his or her property distributed after death.

• Living Will—This advance directive gives instructions to doctors and hospitals regarding the nature and extent of care a person wants in the event of permanent incapacity.

• Durable Power of Attorney for Property—This designates someone to act on a person’s behalf if he or she is physically or mentally incapacitated.

• Durable Power of Attorney for Health Care—This appoints a person to make health-care decisions in the event that someone is too ill to make a decision.

• Living Trust—This is a legal arrangement that enables an individual to transfer money or other assets to a trustee, who holds legal title for the benefit of that individual and his or her beneficiaries.

Finally, parents and relatives may want to make available (perhaps to a trusted family member) the details and location of their financial accounts. These would include the location of bank, brokerage and credit card accounts, as well as insurance policies (including health, life, annuity and long-term care). Also, it is important to know the location of tax returns, birth certificates and safe deposit boxes and keys. A name and phone list of key financial contacts such as financial advisors, lawyers, accountants and insurance agents should also be made available.

It is a delicate topic, but parents or other relatives may require guidance in coordinating an estate plan. Delaying these discussions can lead to significant family hardship and a loss of highly prized and hard-earned assets. But the strategies that follow a successful discussion can avoid this and provide peace of mind for family members. 

David Rubinowitz is the executive director at Morgan Stanley Estate Planning Services.

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