According to LexisNexis, nearly 70% of African Americans do not have a will or other estate plan in place. That compares to 55% of all American adults. [Related: Financial Fitness for Unmarried Couples During ‘Unmarried and Single Americans Week'] "They don't want to make an estate plan because that is admitting they are going to die,†says certified financial planner, Paula Boyer Kennedy. "The danger of not doing estate planning is that the state in which you reside will do your estate planning for you. All the assets that would have been distributed under the terms of your will are now controlled by state laws. So ask yourself: How happy are you, generally, about the decisions your state makes?†she adds. About six years ago, Derrick McDaniel, an eldercare expert and author of Eldercare, The Essential Guide To Caring For Your Loved One And Yourself, and his wife Marlow, a marketing executive focusing on diabetes products, decided to cast their fears aside. They had just welcomed their first of two daughters into the world. Soon after, Derrick had to fly out of town for business. "I'm an only child, and my wife has only one sister, who is not married. There's not a lot of family to take care of our daughters if something happened to us. I really thought about that when I knew I was getting on that flight,†said McDaniel. "Usually there is a triggering event,†says Barbara Green  an estate planner and attorney at Green and Gross P.C. in Bridgeport, Connecticut. I see young people, (like Derrick and Marlow), about to take their first plane ride without their children. Sometimes it's that people have a special needs child who is approaching adulthood and they realize what they have to do for their child. Sometimes, people get near the age of 50 and realize that they should create a will, she adds.†Where to Begin Whether you go to a professional estates attorney or use software like LegalZoom.com, you want to begin by identifying your assets. Gather your most recent statements for bank accounts, investment accounts, retirement accounts, and any insurance policies you may have. Also, make sure you know where any homeownership deeds or automobile deeds may be. If you have a business, make sure you are clear on the value of your business. You will also want to identify any assets such as jewelry or heirlooms that you want to be part of your estate. In ‘Whom' You Trust One of the most difficult things about coming up with an estate plan is determining who will be in charge of your health, your affairs, and your children once you move on. "Sometimes it's making those decisions that prevent people from moving forward,†says Green. The most important decision you will make if you're a parent is who is the guardian of your children, should you and the other parent pass before the child is an adult. If you don't make this decision, a stranger, a judge who knows nothing about your family or friends, will. It's also important to be sure to have enough life insurance to cover your child's costs if they are not covered by your assets. (Continued on next page) "If something happens to us, someone is going to show up with a check. We want to be sure their guardian has liquid cash to take care of our girls as they disseminate the things we own,†says Derrick. When it comes to your health, if something were to happen to you today that left you unable to make decisions for yourself, someone would have to make decisions for you.  These decisions can range from things like needing a blood transfusion if you are unconscious after a car accident, to deciding whether or not you should go on life support. The person you appoint to make healthcare decisions is called ‘the agent.' You are ‘the principal.' Unless you limit your agent's authority, in most cases, they have the power to make any medical decisions you would make on your behalf. While a healthcare proxy gives an agent the authority to make medical decisions for you, a living will allows you to lay out your wishes. Living wills are often combined with healthcare proxies to create "advanced medical directives, which allow the agent to follow your wishes in the living will without having to ‘figure out' what you would do. The person you want to make your healthcare decisions may be different from the person you trust to execute your financial and business affairs. If you become incapacitated and you're alive, those responsibilities, which include things like making financial decisions for your children, paying everyday expenses, and filing your taxes, are made by your attorney-in-fact. Once you pass, the ‘title' becomes executor. Creating a Will A will is a document that allows you, the testator, to name who you want to manage your estate when you die, this is called the executor. It also allows you to direct how you want your property managed and distributed. More importantly, your will allows you to name who you want to act as the guardian for your minor children or other dependents. If you die without a will, you are what is called ‘intestate,' and your estate will go into probate. That means state law determines who gets your assets and the court will decide who gets your kids. You are not required by law to have an attorney prepare your will, but laws governing wills vary from state to state, so unless you are familiar with your states laws, you may want to get legal advice. Your state also has a Department of Aging which can provide you with guidance. Do You Need a Trust? A trust is an arrangement that allows you to give property to one person, the trustee, who holds it for the benefit of another, the beneficiaries. The document creating the trust spells out how you want the assets you have in trust disbursed to beneficiaries. It also helps you avoid probate. If your main goal is to control how your kids use your assets after you pass, you can stipulate in your will that a ‘testamentary trust' will be created after you die. There are different types of trusts for different purposes. You should definitely talk to an estates attorney if this is something you want to consider. Costs The costs of estate planning will vary greatly depending on how much you do yourself.  Personalfinancecosthelper.com says you can expect to pay between $800 and $1,800 for a basic estate plan.