Estate plans put the legal papers in place to ensure that when you die, the people you prefer receive your assets and care for your children - and if you become incapacitated, the right people make financial and medical decisions - all with a minimum of hassle from the probate court system.

"Having a comprehensive estate plan in place is crucial to ensure that your intentions are honored after your death," says Frank Saporito of U.S. Bank. "This requires advanced planning with your tax and legal advisors and frequent updating of all documents prepared for the disposition of your estate."

Moderate-income homeowners like those in the Chicago Community Land Trust should not think that estate planning is just for the well-to-do, says Thomas R. Fortino of Alpha Wealth Group. That misconception often crops up because estate taxes only hit those near the top of the income and wealth scale.

"If you have assets over $100,000, or you own property, your estate will be exposed to probate court" without an estate plan, he says. "You will be exposed to whatever the court system decides for you and your family. It may not be what you want."

Many people think about a will as the primary document they will need, and it is important to ensure that you have control over where and how your assets are distributed-and where and how your children are cared for.

But a will by itself still puts your beneficiaries in the position of having to endure probate court to gain those assets, requiring time, energy and the public airing of what you probably want to be private information, Fortino says.

For that reason, "the living trust is the first document we talk about," he says. "It allows an individual to avoid the entire probate process. It's totally private. It places the people in charge of the estate that you want to be in charge; and it survives you and makes sure that the assets go to the beneficiaries you want to receive them."

"Many people mistakenly assume that a will can keep their estate out of probate court," Saporito adds. "But if you have independently held assets, the opposite is true. ... One way to potentially avoid probate is to create a living trust." These are revocable, he notes, which means that they can be canceled or revised-to change names of trustees or beneficiaries, for example-at any time.

Another key document is the financial power of attorney, which designates who can act on your behalf if you are mentally or physically incapacitated-again avoiding the probate process, Fortino says. "Otherwise, the court will determine who that person is," he says.

The medical power of attorney designates who can make medical decisions if you're incapacitated. This can include issues like whether to continue life-sustaining treatment in the event of a coma or similar state of consciousness.

Other documents that Fortino mentions, which are not necessarily legal in nature but definitely helpful to your next of kin, are letters of instructions, personal wishes and property directives.

"Those types of things, while maybe not totally recognizable in court, you're giving direction," he says. "Your children may not know you have three bank accounts, and they may not know you have a life insurance policy you bought 40 years ago. There should be instruction on what you own, where it's at and what the value is."

Bottom line, Alpha Wealth Group charges about $1,000 for the full set of estate planning documents, while Fortino has heard of people paying as much as $2,000 to $3,000. While estate-planning forms can be downloaded off the Internet these days, he adds, "Of course I would recommend seeing a professional. Can it be done online? Yeah. It's a shortcut. It's a cheap way to do it."