Creating an estate plan is one of the most empowering financial moves you can make.
A Will is the most important legal document of your life. It helps you put your affairs in order. It allows you to clearly outline how you want your assets to be distributed after you pass away, or if you become incapacitated and unable to make decisions on your own.
A thorough estate plan includes instructions for health care decisions, final arrangements, financial decisions, property and asset distribution, and guardianship for minor children.
If you love your family and want to protect them, minimize legal complications, and leave a clear legacy and here’s what you need to know.
Benefits of Estate Planning
Estate planning is not just for the wealthy. No matter your income level or net worth, putting a plan in place can:
- Take care of your loved ones, including minor children, even after you’re gone
- Ease the financial burden on your beneficiaries
- Clearly outline your financial wishes for your family
- Designate a trusted person to act as your power of attorney
- Minimize taxes and legal expenses tied to your estate
- Ensure the right people are making your healthcare and financial decisions
Smart Estate Planning Checklist
Ready to get started? Here are the seven Smart Moves you need on your estate planning checklist:
- Take Inventory of Your Assets – Start by listing everything you own:
- Tangible assets: Collectibles, vehicles, real estate, Jewelry etc.,
- Intangible assets: Bank accounts, retirement accounts (401(k)s, IRAs), stocks, bonds, business interests, life insurance policies, etc.
Gather documents like account statements, appraisals, and policy information, and estimate the value of each item. A complete inventory gives you a clear snapshot of your estate plan.
- Assign a Power of Attorney
- A financial power of attorney (POA) allows someone you trust to manage your finances and make decisions on your behalf if you become medically unable to do so. Your designated agent can act in legal and financial matters, access and manage your assets, and pay bills and taxes.
- Without a POA in place, the court may appoint a guardian—someone you may not have chosen—to take control of your affairs.
Smart Move: Make this decision early to ensure your financial matters are handled according to your wishes.
- Finalize Your Will and Set Up Trusts
Your Will designates who is going to inherit your assets and names guardians for your minor children. It is a critical part of an estate plan, providing clear instructions for how your assets should be distributed after you pass away and who will care for your children if needed.
Typically, a will includes:
- Designation of an executor
- A list of beneficiaries
- Instructions for how and when beneficiaries will receive their inheritance
- Guardianship appointments for minor children
Remember, without a will, an estate may be left to the state officials, who will decide how your assets will be distributed.
Additionally, trusts (optional) can be used to manage specific assets, like property or funds set aside for minors, and can often help avoid the probate process, offering greater privacy and efficiency.
Key Tip: Keep your will consistent with all related documents & accounts, including insurance policies, retirement accounts, etc., to ensure a smooth and conflict-free transfer of your assets and to prevent disputes or challenges.
- Name Beneficiaries
Naming your beneficiaries is an important part of the estate planning process, helping save time and money when accessing funds. Ensure that all your major accounts—life insurance, IRAs, bank accounts, brokerage accounts, etc.—have up-to-date primary and secondary beneficiaries.
Regularly review these designations, especially after major life events like the birth of a child, marriage, or divorce. Like Wills, trusts, and powers of attorney, if a beneficiary is not named, or the beneficiary is underage or has passed away, a court will likely decide what happens to the estate.
- Appoint Guardians for Children
If you have minor children or dependents with special needs, naming a guardian is one of the most important parts of your estate plan. Without your guidance, the court will often decide who will take care of your children.
You can choose someone you trust and have open conversations with them about your wishes.
- Your Child Turned 18
When your child turns 18, they are legally considered an adult, regardless of how young they may still seem in your eyes.
You will lose the ability to make decisions on their behalf or access their health, education, or financial records unless there are specific legal documents in place.
This seemingly minor legal shift can have major consequences if not carefully planned for. Without the right documents, medical providers, financial institutions, and educational organizations cannot share information or allow you to act on your child’s behalf, even in emergencies.
Smart Move: Put certain legal documents in place to designate a legal representative for your child.
- Connect with Financial and Legal Experts
Estate planning can be complex, but you don’t have to navigate it alone. Partner with a financial professional and legal team who can ensure all documents are legally sound, clarify your personal and financial goals, and minimize legal complications.
Having a trusted team can also be a valuable resource for your family when the time comes.
Final Thought
Whether you’re creating a simple will, designing a detailed estate plan, or updating an existing one, acting now is a vital step toward protecting your loved ones, preserving your legacy, and ensuring your voice is heard.
A well-thought-out estate plan isn’t just smart—it’s an act of love.
We are a team of independent professionals licensed to provide financial planning, retirement, and estate planning services. I offer complimentary consultations to help you get started and make informed decisions.
Because today’s Smart Move could be a total game-changer for your family’s future.
Disclaimer: The information shared in this material is intended for educational purposes only and should not be considered legal, financial, or tax advice. While we strive to provide accurate and timely information, laws and regulations are subject to change. We encourage you to consult with appropriate experts before making decisions based on the material provided here. Everyone’s situation is unique, and decisions should be made with the guidance of qualified legal, tax, and financial professionals.
