Your Guide to Estate Planning

The act of creating an estate plan is ultimately an act of love and caring for the people in your life. It is the process of organizing and creating concrete plans for the transfer of your assets in the event of your death or incapacitation. For this reason, it is a serious task to undertake, but it is one that protects and can help provide for your loved ones.

How complicated your estate planning may be will depend on the complexity of your assets, but all estate planning deserves attention to detail through every step of the process. We have put together tips for you as you begin your estate planning.

Bring in the experts.

Having a team by your side through the process of estate planning is essential. These experts can be tax advisors, financial planners and an attorney who specializes in estate planning. Each of these professionals will bring to the table unique expertise to ensure your estate plan is comprehensive and drafted in accordance with your wishes. With the help of your team, you can also minimize the effect of estate taxes to maximize the benefit to your heirs, who pay those taxes after your death. 

Evaluate your assets.

Many of your assets may be obvious: a home, antiques, financial accounts, vehicles, jewelry and more. However, now is the time to be as thorough as possible. Do you have any inherited property or ownership rights? Do you have digital assets like music or photos? Include everything in your estate plan to ensure it is transferred with care. Even your pets and other animals should be accounted for.

Document everything.

When your estate plan is clear and well organized, your assets may be transferred to your heirs easily. Otherwise, your estate may end up in probate court. Ensuring your estate plan contains all the right ingredients can help you avoid probate, which can be a long and expensive process. These include:

• Last Will and Testament – Your will contains instructions for how to transfer assets to your beneficiaries upon your death. It also allows you to name an executor to carry out your wishes and guardians for your children. 
• Advanced Healthcare Directive – This document is enacted in the event you become incapacitated. It can include a living will and a healthcare power of attorney.
  • Medical Care Directive/Living Will – A living will spells out what healthcare you agree to receive if you are incapacitated. It includes a healthcare power of attorney document to allow someone to make medical decisions on your behalf.
  • Financial Durable Power of Attorney – With this document, you can assign someone to make financial decisions for you in the event you are incapacitated.
• Trusts – Some people may benefit from creating trusts, which are legal entities designed to hold assets for heirs. It provides specific instructions and helps your estate avoid probate. There are several types of trusts.
  • Revocable living trusts, allow you to modify or end the trust in your lifetime.
  • Irrevocable trusts, which can’t be changed but offers greater financial and legal protection.
  • Charitable trusts, can donate assets to charitable organizations and provide tax advantages.

Plan for long-term care.

Your estate plan should not only consider what happens in the event of your death or incapacitation. It can also be designed to help you live more fully when you need help. Your estate planning team can help you evaluate options for long-term care protection, which can help pay for care and services when you are no longer able to live independently.

Pay attention to detail.

Once your plan is complete but before it is executed, review everything to ensure it is exactly how you want it and that it takes into consideration all your loved ones and assets. You should also ensure that the beneficiaries of assets within your will or trusts match the beneficiaries designated within your financial account information. 

Throughout your estate planning process, your team of experts can advise you and help ensure your plan is complete and thoughtful. If you have any questions or need resources for your estate planning, reach out to your team at APCU. Our collaborators at Member Wealth Management can help. To schedule a Member Wealth Management appointment, please email Todd Hassler at Toddh@bluelegacyadvisors.com or call 757.493.4352.