What is Estate Planning?
Thursday, July 23rd, 2026
What may be included in an estate plan?
- Powers of Attorney
- Advanced Directive
- Living Will
- Last Will and Testament
- Trust
What is a Power of Attorney?
A Power of Attorney is a document operable during your lifetime that names one or more trusted individuals to help manage your affairs. This individual may be referred to as your “Attorney-in-fact” or simply your “Agent.” Generally, you can name any competent adult to serve as your agent provided, they are not disqualified by law.
Tennessee allows you to appoint co-agents, although it may be a better option to name an alternate agent who will become your agent if your first choice is unavailable for any reason.
You have the right to revoke or modify your Power of Attorney at any time during your lifetime as long as you remain competent.
Without a Power of Attorney, a court may need to appoint a Conservator which will take time and money.
There are two kinds of Power of Attorney: (1) Financial and (2) Healthcare
Financial Power of Attorney
A Financial Power of Attorney allows you to appoint someone to manage your financial affairs on your behalf. A Financial Power of Attorney may be general, durable, or springing.
- General/non-durable: effective only while you are competent and generally used to address situations when managing your affairs may become difficult due to travel, injury, or the like
- Durable: remains effective upon your incapacitation
- Springing: effective only after you are declared incapacitated
If you sign a Springing Durable Power of Attorney, your agent cannot act on your behalf while you are competent.
Healthcare Power of Attorney
A Healthcare Power of Attorney allows you to appoint someone to make healthcare decisions on your behalf if you are incapacitated. It usually becomes operable upon one or two doctors confirming incapacitation. The agent you appoint must make decisions in accordance with the guidance and terms of the Healthcare Power of Attorney and your Advance Directive or Living Will, if you have one.
What is a Living Will?
A living will is a legal document that outlines your wishes for medical care if you become incapacitated. A living will is usually limited to instructions about life-sustaining treatment in end-of-life situations. It directs healthcare professionals to withhold or withdraw life-prolonging interventions when you cannot speak for yourself. This document ensures that your personal wishes are honored while reducing the burden on your family to make difficult decisions during an emotional time
What is an Advanced Directive?
An Advanced Directive is a legal document that enables someone to make medical decisions on your behalf and directs healthcare professionals in providing future medical care when you become incapacitated. It combines the functions of a Healthcare Power of Attorney and a Living Will.
An Advanced Directive is a comprehensive document that addresses serious medical conditions that are more than just end-of-life situations and allows your agent flexibility to determine your treatment among different medical situations. An Advanced Directive is a particularly valuable tool when your prognosis is uncertain. It also allows you to indicate instructions for hospice care, burial arrangements, and organ donation.
What is a Will?
A will is the foundation of your estate plan. A will is a document that details how you want your assets to be distributed upon your passing. You can leave assets to individuals, a group of individuals, or a charity in your will (but not pets). It may be changed or revoked during your lifetime and does not become operative until your death. You should work with a lawyer to prepare your will to ensure that the will is valid.
In your will, you will appoint an executor who will carry out the terms you set forth. An executor may also be called an administrator or a personal representative. The executor will administer your Estate in accordance with your will through the court system. This process is called probate.
Nonprobate assets
Some assets do not pass through your will. These are called nonprobate assets and include things like your retirement accounts, life insurance policies, and other accounts with pay-on-death beneficiaries.1 Designated beneficiaries on these accounts will override your will.
Married Couples
Jointly owned property between you and your spouse passes automatically to the surviving spouse upon the death of the first spouse without the necessity of probate. This includes jointly owned bank accounts, vehicles, and personal property.
Most married couples hold title to real property jointly in a form of ownership called tenancy by the entirety. Tenancy by the entirety is a form of joint ownership with a right of survival that is only available to married couples. It’s easy to indirectly sever this type of ownership, so you should speak to an estate planning attorney before adding someone to the title of property you own jointly with your spouse.
If you are married and owns assets separate from your spouse, you can dispose of those assets in your will. However, Tennessee law provides certain protections for a surviving spouse despite the language of a will.2 A surviving spouse has certain legal rights to their deceased spouse’s separate estate and separate assets may pass contrary to your will. You should speak to an estate planning attorney about these rights.
What Happens if I Don’t Make a Will?
When you pass away without a will, your assets are distributed by the laws of your state rather than your personal wishes. This is called intestate succession.
Tennessee Intestate Succession
- If you leave behind both a spouse and children, your spouse receives all jointly owned property and either one-third of your separate estate or an equal share of your separate estate with your children, whichever is greater.3
- If you pass away leaving a spouse but no children, your spouse inherits any jointly and separately owned property.4
- If you pass away leaving children but no spouse, your children will inherit all of your estate. In Tennessee, if a person who would have inherited from the deceased has already passed away, that person’s share will pass to their descendants.5
- If you pass away leaving no children or a spouse, your assets pass to your other relatives in a particular order provided by law.6
What is a Trust?
A trust can be a valuable tool in managing and distributing your assets. A trust is a legal entity where a person places assets under the care of a trustee who manages them for the benefit of another person, a group of people, or a charity. A trust provides certain protections and allows you to maintain control of assets after your death.
Every estate plan does not require a trust, but it may be beneficial in certain circumstances. Whether a trust is appropriate is a case-by-case analysis that considers the value of your assets, family dynamics, and your personal goals.
A trust can be categorized in two ways: (1) whether it can be changed and (2) when it was created.
Whether it can be Changed
A trust can be either revocable or irrevocable. A revocable trust can be changed or revoked at any time you are competent, while an irrevocable trust generally cannot. A revocable trust does not provide asset protection from creditors because the settlor usually retains control over the assets, whereas an irrevocable trust protects assets7 from creditors by removing the assets from the settlor’s ownership and control. There are certain requirements that must be met to obtain asset protection through a trust.8
When it was Created
Living Trust
A trust created during your lifetime is called a living trust or an inter vivos trust. The trust can continue during your incapacity and after your lifetime for the benefit of your family or others.Assets properly titled to the trust pass according to the trust terms and do not have to go through probate upon death. Therefore, an additional benefit of a trust created during your lifetime is that your financial affairs remain private.
Testamentary Trust
A trust created by your will is called a testamentary trust. It does not become operative until your death. During your lifetime, the trust within your will can be changed or revoked at any time. Once you pass away and the trust becomes operative and is generally irrevocable.
Testamentary trusts, or sub-trusts within a revocable or irrevocable trust, are useful tools to hold and direct the disposition of assets for beneficiaries who are minors, disabled, and/or charitable organizations following your death.
Special Needs Trusts
You may have a loved one with a disability who receives government assistance. A Special Needs Trust can hold assets for your loved one without affecting their eligibility for government assistance.
Charitable Giving
Charitable giving is an important part of many estate plans. Charitable giving can allow you to benefit a certain cause or organization while potentially offering tax advantages. Charitable giving may be accomplished through a will, trust, or pay-on-death beneficiary designation on accounts.
Plan for the future & Reach Out Today
Lipsey Morrison is here to help guide you through the process of creating an estate plan. Please contact us at (865) 546-6321 for assistance.
This communication is for general informational purposes only and does not create or constitute an attorney client relationship. Please consult a qualified attorney for legal advice tailored for you.