Face it: You're going to die.

It's not a happy thought, but it is realistic. And you should be prepared -- at least on paper. Make some decisions now -- while you're healthy and relatively crisis-free -- that will save your family members from further anguish and possibly fierce fighting in the event that your time on this planet turns out to be shorter than you had hoped.

Everyone -- especially every parent -- should have several important documents providing for distribution of his or her assets and giving instruction in some other vital matters, such as who should look after the kids.

Here's a goal to add to the top of your 2003 resolution list -- one that's far more important than organizing the linen closet: Take a close look at your if-I-die options. To get you started, we talked with experts about three major legal matters: wills, living trusts and living wills.

Our quick guide to these basic documents is designed to help you get started in the process. A truly thoughtful person may also leave instructions for the family, listing his or her wishes for burial or cremation, requests for particular funeral homes and ideas for the funeral or memorial service program.

One caveat: Before you make any big decisions, remember to talk to your family and consult a lawyer.

1. A will

What it is: A will is a legal document that takes effect after your death; primarily, it designates what will happen to your money, possessions and property. "There are a lot of people who don't have wills because they don't think they need them -- and they really do," says Fort Worth attorney Steve Katten.

What you can do with it:

A will does several important things.

• It lets you choose an executor. This is a personal representative, the person who makes sure your estate is handled according to your wishes. It can be a friend, a family member, even a professional.

• If you have children, a will lets you designate a guardian. This is especially important if you're a single parent, or if you and your spouse die at the same time. If you haven't made your choices clear, the state may appoint a guardian you wouldn't have chosen.

• A will can also keep young children from inheriting real estate outright, which will save them a lot of time and money. Why? If you die without a will, your property may be left to your children or divided up among family members. If your kids are minors, they won't legally be able to manage the property they inherit. So even if a minor inherits just a small share of the property (and if you don't have a will, your children get a share of everything), the law will require an expensive court order to sell that property, rent it out or do just about anything else with it.

With a will, you can put the property in a trust so your kids can have it when they're older. (In fact, you might want to keep it there beyond your child's 18th birthday; perhaps at age 22 or 25, they can manage it better.)

• You can use tax advantages to make sure your assets don't become big tax burdens to the people who inherit them. There are trusts that can protect your spouse or your grandchildren, for example, from inheriting a taxable lump sum.

• A will also lets you distribute possessions that have sentimental value. It doesn't matter how many times you've told your niece that she'll inherit your porcelain doll collection. If you haven't put it in your will, she may never get it.

Problems to watch out for: Beware of computer software and other do-it-yourself will kits. They're less expensive than hiring an attorney, but you do have to be careful.

"Some [do-it-yourself kits] are better than others," says Plano attorney Dianne Reis, who has dedicated a Web site to wills and trusts. "With some programs, the directions aren't clear or complete. This isn't acceptable when you're dealing with a legal document -- the tiniest mistake can make your will invalid."

If your situation is very simple -- say, your assets are all in a single bank account and your only child's name is on that account -- you might do just fine with a do-it-yourself kit. But in most cases, the experts say, it's a good idea to check with a lawyer.

Bottom line: You need a will. Even if your estate is small, you need a will. Even if you have a living trust, you need a will. If you have children, you really need a will. You don't want to leave all those important decisions up to the court.

2. A living will and power of attorney

What it is: Coupled with a power of attorney, a living will allows you to make important decisions about your medical care. It doesn't involve distribution of your assets, but it's just as important -- perhaps more so -- than a will or living trust.

What you can do with it: If you're incapacitated, you won't be able to make health-care decisions for yourself. So in case that happens, you should designate someone you trust to make those decisions for you, giving him or her medical power of attorney. In addition, you should designate a financial power of attorney (this can be the same person, but it doesn't have to be) to take over your finances if you're incapacitated.

A living will, also called an advance directive, is an instruction for your doctors. It tells them not to take extreme lifesaving measures if your death is probable and imminent. It clarifies the quality of life that you would like for yourself. This saves your family from having to make that sort of excruciating decision, not knowing what you'd prefer.

Problems to watch out for: Be sure you have talked to the person you're giving power of attorney; make sure he or she is willing to act as your health care or financial agent (this may involve tough things like meeting with ethics boards at hospitals and dealing with relatives who disagree with what he or she has been charged to do). Explain your preferences and wishes before it's too late.

Also: Don't store these documents where your family can't find them. If your designations are hidden, your wishes won't be known. And don't keep papers designating power of attorney in a safe deposit box; the bank will require a power of attorney to access the box.

Bottom line: With many attorneys, setting up a living will and power of attorney often comes part-and-parcel with drawing up a will. If you already have a will, though, you can probably make these designations on your own, without professional guidance. The state of Texas publishes a standard form; you can download it from multiple Web sites (do an Internet search for "living will") or you can request a form from your doctor or a local hospital.

A living will and power of attorney, Katten says, may be even more important than a will. "If you don't have a will, the state of Texas has written one for you, even though it may not be the one you want," he says. "If you don't have power of attorney, there's no real substitute for that."

3. A living trust

What it is: A living trust is a way of managing your assets before your death. If you manage everything correctly, it will allow your property to be transferred directly to a designated successor, skipping the usual court procedure.

What you can do with it: Normally, your will is probated when you die -- there's a court proceeding that validates your will, pays your debts and distributes your property. But if you set up a revocable living trust, you might be able to avoid the probate process. Here's how it works: You transfer your assets from your name to the name of your trust. That means you, the individual, no longer legally own anything; it all belongs to your trust (which you, of course, control when you're alive because you're the trustee). Because you're then property-free, the court has nothing to control when you die and the trust is passed along to your successor.

You and your spouse can be co-trustees, or you can designate a successor to take over the trust if you die or become incapacitated.

Problems to watch out for: "It's a lot more hassle to maintain a living trust," warns Reis.

The trust can protect only the assets you've transferred into it. That means you can transfer everything you own right now into a trust -- but if you buy, say, some stock or a new car later on, then forget to transfer those into the trust, that property's under your name and it will have to be probated when you die. So if you're not meticulous about staying on top of it, setting up a living trust can be a wasted effort.

Also: If you have a living trust, you still need a will to cover assets that weren't transferred into the trust during your lifetime. This isn't, however, as hard as it sounds -- it can be accomplished with a "pour-over" will, which takes any assets you've forgotten and pours them straight into the trust.

Bottom line: For some, living trusts may not be necessary. For others, they can save time and expense for your successors. In general, says Reis, living trusts may not be a good idea for people in Texas, where the probate process isn't very complicated or costly. A living trust may be a good idea, though, if you have property in another state -- especially one where the laws aren't so straightforward. Putting that property in a trust is a lot easier (and cheaper) than a probate in two or more states. Again, look into the options, and get professional advice.

Wills Getting started

The cost of drawing up a will varies. If you use an attorney, you can expect to pay from about $300 for a simple, straightforward will to $1,500 for a complicated situation.

Will-writing software programs cost less than hiring an attorney. Programs such as Quicken Lawyer and Family Lawyer cost about $25 to $50. Lawyers, of course, don't recommend these programs -- but it's not just because they want your business. If your situation is fairly simple, a software program might suffice. But be careful; if you don't know exactly what you're doing, go ahead and pay for legal advice.

If you don't have an attorney, the Tarrant County Bar Association offers a lawyer referral service; call (817) 336-4101. You can also search online at the Texas State Bar Association's Web site; go to www.texas bar.com and click on "Find a Lawyer."

If hiring a lawyer is too expensive, consider this: You may qualify for help from West Texas Legal Services, a nonprofit organization that provides legal help -- including wills and probate -- for low-income residents. To find out if you qualify, call (817) 336-3943 from 8:30 to 11 a.m. or 1:30 to 4 p.m. Mondays through Wednesdays. You can also call the group's Weatherford office at (817) 594-6332, 9 a.m. to 12:30 p.m. Mondays through Wednesdays. If you want to meet with someone, community legal clinics are also scheduled several times each month at locations throughout the county; call for a schedule.

On the Web: Dianne Reis' Web site, www.willsandprobate.com, provides introductory information about wills and trusts. The "FAQs" section offers general advice and explanations of terms.

-- Alyson Ward
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