- Estate planning is for everyone, not only the wealthy.
- A will, powers of attorney and a healthcare directive are the core documents.
- Beneficiary forms override your will for many accounts, so keep them current.
- Review your plan every few years and after major life events.
Estate planning is for everyone
Many people believe estate planning is something only the wealthy need. In reality, it is simply about making sure your wishes are known and your loved ones are taken care of if something happens to you. Without a plan, state laws and the courts may decide who receives your assets and who cares for your children.
The core documents
A will names who you want to receive your property and, just as important, who you want as guardian of your minor children. A living trust can hold your property during your life and pass it to your beneficiaries afterward, often avoiding probate, which can be lengthy, costly and public. A durable power of attorney names someone to handle your finances if you cannot. A healthcare directive states your medical wishes, and a healthcare power of attorney names someone to make medical decisions for you if you are unable to.
Beneficiary designations matter
Retirement accounts, life insurance and some bank and investment accounts pass directly to the beneficiaries named on the account, regardless of what your will says. Many people are surprised by this. An outdated beneficiary form is one of the most common estate planning mistakes, so review yours after a marriage, divorce, birth or death in the family.
Think about how assets are titled
How you own property, whether in your own name, jointly or in a trust, affects how it passes to others. Making sure titles line up with your plan helps avoid surprises.
Make it easy for your family
Keep a list of your accounts, policies and important contacts, and tell a trusted person where to find it. Talking openly with your family about your wishes can ease confusion and prevent conflict later.
Review your plan over time
Life changes, and your plan should too. A good rule of thumb is to review it every few years and after any major life event, like a move to another state, a new child or a significant change in your finances.
Work with the right professionals
Estate laws vary by state, so legal documents should be prepared by a qualified estate planning attorney in your state. A financial advisor can help make sure your accounts, insurance and beneficiaries line up with the plan.
Your next step
If you would like help reviewing your accounts and beneficiaries as part of a bigger financial plan, request a free consultation.
Protect what matters most
We can help you review your accounts, coverage and beneficiaries in one conversation.