Estate Planning
If you thought estate planning was just for the wealthy or for those advanced in age, you are not alone. However, this is a misconception. We know our days here are not guaranteed so it’s important to designate who receives your assets while you can. Not only will you have peace of mind that comes with knowing that your financial affairs are organized, it can also prevent potential anguish and hassle for your loved ones.
While the process for creating an estate plan is typically straightforward, there are a few common mistakes and omissions to be aware of when planning. We’ve put together a list of do’s and don’ts as a guide.
Estate Planning Do’s
- Do start early. As you know, life is unpredictable, so the sooner you get started, the better.
- Do create a will. This enables you to specify in advance what you’d like to be done with your assets when you pass away.
- Do create a living will. A living will is a health care directive that expresses your wishes and instructions when you become incompetent and have an end-stage medical condition or are permanently unconscious.
- Do list beneficiaries. Confirm that your retirement accounts, life insurance policies, annuities and other financial instruments have up-to-date beneficiary information. Beneficiary designated assets avoid probate.
- Do create a durable power of attorney (POA). This is a legal document that entitles a person of your choosing to make decisions related to your personal property and finances if you aren’t able to do so. Keep in mind that a POA ceases when you pass away.
- Do consult a professional. Because it involves legal, financial and tax considerations, working with an expert can help you create a comprehensive and effective plan.
Estate Planning Don’ts
- Don’t procrastinate. Failing to plan could have unintended consequences for your loved ones.
- Don’t forget to name legal guardians. Designate a legal guardian in your Will if you are the parent of young children.
- Don’t assume a will covers everything. Estate planning should be thorough, account for all of your assets, and plan for family dynamics.
- Don’t forget sentimental items. Be sure to document who will inherit special items such as automobiles, artwork, jewelry, prized possessions and collectibles.
- Don’t forget to review periodically. This should be an ongoing process that evolves over time as needs, goals and family situations change, ie., births, marriage or divorce, retirement, relocation, a substantial increase or decrease in the value of your estate.
Estate planning is a gift to your loved ones and a way to ease their burden during a difficult time. With the tips above, we hope you will create a plan that reflects your values, protects your assets and provides peace of mind. Our experts would love to meet with you to help you achieve your estate planning goals.
*This is not tax, legal or financial advice. Please seek assistance from your tax advisor, lawyer or financial professional.
