Are you interested in estate planning, but aren’t sure what to expect? Below you will find a general outline of the steps in a simple estate plan.
Step 1: Inventory your assets and debts.
- Residence, vacation home, and other real estate
- Bank accounts, investment accounts, retirement plans, and bonds
- Life insurance policies
- Vehicles
- Collectables and other assets
- Debts: Mortgage, auto loans, credit cards
When your agent under your power of attorney for property, trustee, or your executor is required to manage your assets, they will need to know which assets you own and the approximate value of those assets. Additionally, if debts are owed, they must ensure payments are timely handled.
Step 2: Write down your objectives. You should consider where you wish for your assets to go upon your death. Additionally, consider who you trust for authority for the following actions:
- To be guardian of your minor children
- To make medical decisions for you, if you’re incapacitated
- To control your assets and pay your bills if you’re incapacitated
- To be your executor or trustee
Step 3: Consult with a professional you trust to prepare documents necessary to meet your needs.
Step 4: Review title of your assets and beneficiaries of your accounts. Once your estate planning documents are in place, you will want to ensure your assets are properly titled and beneficiary designations align with your overall estate plan.
Step 5: Review potential estate tax issues with your legal counsel.
Step 6: Periodically reassess your estate plan over time, or after major life or family changes, to determine if revisions to your estate plan are needed.