A common misconception about estate planning is that it is something only the very wealthy, or the very elderly need to worry about. However, every Houston resident who is over the age of 18 does need to do some estate planning.

Those with modest assets often think that they do not need to do any estate planning, but there are some basic plans that each person should have in place.

Everyone over 18 should think about listing a Power of Attorney. Often, young, single college students fail to do this because they assume that their parents still have the authority to make medical and financial decisions for them. However, this is not the case, and parents who are not listed as a Power of Attorney would need to go through court in order to gain this control. Many married couples also often fail to update their power of attorney to their spouse, or to terminate an old power of attorney document upon marriage. 

Those who have young children or assets, however modest, may also want to draft a basic will. A will is a good place to list guardians for minor children and list any beneficiaries. However, it is important to know that in order for a will to be fulfilled, probate court takes place in order to determine taxes and fees which will take away from the estate.

This can be avoided with trusts, though trusts are not always suited for small estates. However, trusts are a good way to protect gifts you would like to pass down to younger loved ones. Trusts can hold the inheritance until the child turns 18, and can also prevent the estate being lost to long-term care costs or creditors.

These are the basic elements that adults with modest estates may want to consider. An experienced estate planning attorney can help you to weigh your options and learn what services would suit you best.

Source: Green Bay Press-Gazette, "Carissa Giebel column: Everyone needs estate planning," Dec. 27, 2012