Imagine this: you’ve worked hard your whole life, built a legacy, and created a future for your loved ones — only for chaos and uncertainty to take over when you’re no longer around. Without a solid estate plan, that’s a real possibility. Whether you have a sprawling estate or just a few cherished possessions, an estate plan helps ensure your wishes are honored, your loved ones are protected, and your legacy is preserved. It’s not just for the wealthy — it’s for everyone who wants peace of mind and control over what happens next. Let’s make sure your story is written your way.
Estate planning isn’t just about assets — it’s about protecting your legacy and relieving stress for your loved ones. It’s also not something you want to wait until retirement to do. Unexpected events can occur at any phase of life, regardless of age or your asset levels. An estate plan is your roadmap for managing your affairs in the event of your incapacitation or death. At its core, it’s a powerful process that lays out your intentions about the distribution of your assets, addresses critical aspects around guardianship for your dependents, and sets out who can make decisions about your healthcare and end-of-life preferences if you can’t. A properly executed estate plan helps keep your matters private by avoiding cumbersome and costly probate courts and helps secure the welfare of your heirs after taxes and fees.
Items that you should document in your estate plan include the following:
- Assets. Your estate plan outlines how your assets will be distributed upon your passing. This is done through your will, which may include a testamentary trust for the benefit of your minor children or dependents, or one or more trusts for other purposes, such as charitable giving. Trust documents often include guidelines for distribution of assets to your children as they age and can provide for special oversight where family dynamics might complicate straightforward distribution Think of an estate as added “guardrails” for beneficiaries with complicated marital dynamics, high-risk-of-litigation careers, substance abuse concerns, and other extraneous variables.
- Guardianship. If you have minor children, naming a guardian through your will is paramount. Without the proper documentation, family members might have to step up arbitrarily, or worse, the courts may decide where your children go. It’s sobering but essential to have these decisions properly communicated in writing.
- Financial decisions on your behalf. Incapacitation shouldn’t stall your financial well-being. Your estate plan should include a durable power of attorney (and successor trustee if trusts are incorporated into your plan) to handle your financial matters in case you’re unable to do so. This ensures a trusted individual is in charge and permitted by financial institutions to act on your behalf to prevent mismanagement of your resources.
- Medical and end-of-life decisions. Your healthcare needs and end-of-life preferences must be explicit. Having a healthcare power of attorney empowers a person of your choice to make medical decisions on your behalf when you can’t, and a living will outlines your wishes regarding when to cease medical interventions, honoring your personal values and wishes.
While considering an estate plan for yourself, it’s also often worthwhile to review your parents’ estate plan if there’s an expectation that you’ll be helping them as they age. It’s vital that their financial and healthcare documents are up to date to help ensure their affairs are handled according to their wishes and documentation is on file with the proper institutions so that you can step in seamlessly as they transition into new living situations or become incapacitated.
The estate planning process
A systematic approach to estate planning begins with a comprehensive review of your financial situation followed by an action plan to move forward. Estate planning involves three key steps.
1. Prepare your personal balance sheet
The process starts with compiling a personal balance sheet detailing all assets and liabilities. This includes bank accounts, insurance policies, real estate, and personal property. A thorough job preparing your balance sheet helps ensure that no assets are overlooked and can prevent potential complications (e.g., lost or forgotten assets) later in your estate’s administration.
2. Draft legal documents
Armed with your balance sheet, you’ll engage with a credentialed estate planning attorney to draft the necessary documents. Your attorney will provide important insights and ensure your estate planning documents accurately reflect your desires.
3. Ensure titles and beneficiaries match your plan
Many times, people get estate planning documents back from their attorney and file them away without doing the final steps of updating property and account titling/beneficiaries. In this step, you’ll circle back with your financial advisors to ensure the assets on your personal balance sheet are accounted for in your estate plan and that titles and beneficiary designations match your plan as the drafting attorney intended.
Estate planning isn’t a “one-and-done” event
An estate plan isn’t a one-time setup; it’s a dynamic tool requiring frequent reevaluation. Life changes such as moving to a new state, marriage, or having children should trigger a review and possible updates to your plan. To keep pace with your evolving needs and the ever-changing tax and legislative landscape, it’s best to review your core estate plan at least every five years.
Forming your estate planning team
An organized estate plan requires a collaborative effort between credentialed financial advisors and tax and estate planning professionals. Start with your financial advisor who will help you prepare your balance sheet, manage your assets, and ensure asset titles and beneficiaries are aligned with the legal documents prepared by your estate planning attorney.
Take the first step
While contemplating mortality can be daunting, setting your affairs in order with a well-rounded estate plan has a big benefit: peace of mind. This vital step diffuses unnecessary stress for loved ones during challenging times and guarantees the passage of your assets as you intend. By preparing a will, leveraging trusts, and designating healthcare provisions, you not only secure a future aligned with your wishes but also foster healthy dialogues with family members about the inevitable transitions of life. A solid plan assures that your legacy and values endure, safeguarding the future of those who matter most.
If you’re ready to take the first step, we’re here to guide you to the right resources. Contact us today to start the conversation about helping you and your family achieve the security a good and properly implemented estate plan provides.
