The importance of estate planning can be seen across the United States as news stories pop up about families fighting for property left behind by their loved ones. Last week, residents in Los Angeles and all across the United States celebrated the historical achievements of Martin Luther King, Jr. A lot can be learned from his actions, both publically and personally. Due to a lack of a complete estate plan, his family is now in a battle over documents that he supposedly left with his former secretary. A will indicating King's wishes in terms of these documents would have made a world of difference for his family. This holds true for more than half of all American families, who are also without a will.

What holds families back from starting the estate planning process? Some say overanalyzing the process has something to do with it. For example, when it comes to naming a guardian for minor children, many parents consider it but often don't actually get to it. Estate planning professionals say this is due to parents overanalyzing their decision. They recommend going with your gut feeling and choosing one of the first people who pops into your mind. The decision isn't set in stone and can always be altered as relationships change and children grow up.

When it comes to your estate, there are ways to make a choice as to what vehicle to pursue during the planning process. If a person has a relatively simple estate with no property owned, they may be able to get away with only setting beneficiaries for all bank and retirement accounts. If they want something special done with their assets, such as a car or jewelry, a will can ensure the proper execution of their wishes. On the other hand, a trust or will is essential for those who own property or have high assets. An estate plan may help them avoid probate and will also reduce confusion for heirs in the future.

Source: Forbes, "A Common Sense Approach to Estate Planning," Nancy Anderson, Jan. 19, 2012