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A High-Level Guide To Estate Planning

By no means is this an extensive list. This guide is only meant to have you think about what is needed to create an estate plan. For local laws and detailed plans please consult an expert estate planner or attorney.

What is an estate plan?

An estate plan is a guide for your loved ones and trusted professionals to make sure that your wishes are fulfilled.

The term estate planning refers to the preparation of tasks that serve to manage an individual's financial situation in the event of their incapacitation or death. The planning includes the settlement of assets to heirs and the settlement of estate taxes and debts, along with other considerations like the guardianship of minors and pets. Some of the steps included in estate planning typically include listing assets and debts, reviewing accounts, and the writing of wills. Simply put,

Do I need an estate plan?

Yes! Every adult should have an estate plan.

Why do I need an estate plan?

Among many other benefits, your estate plan can:

  • Allow you to choose who inherits what.
  • Reduce state decisions made without your wishes being honored.
  • Name guardian(s) for your dependents.
  • Reduce family stress and arguments following your passing.

How to make an estate plan ?

Step 1: Do you need an expert?

Everyone can benefit from an expert, but you really need a professional if your estate has some of the following:

  • Have a partner with whom you aren’t legally married.
  • Have a divorce or custody agreement in place.
  • Remarried or have a blended family — especially if you have children.
  • Prefer that someone does (or doesn’t) get access to you at the hospital.
  • Own multiple properties.

Step 2: Make a list of your possessions. (Physical and Digital)

Before you can decide what will happen to your possessions, you need to make sure that you are accounting for all of them.

You should list everything of value:

  • House
  • Vehicles
  • Bank Accounts
  • Jewelry
  • Social Media Accounts
  • Money Transfer Apps
  • Apple Account

Step 3: List your debts

Take an inventory all of your debts.

  • Credit Cards
  • Loans
  • Store Cards
  • Student Loans

Step 4: Update the beneficiaries on your retirement accounts and insurance policies.

Make sure you are regularly checking and updating the beneficiaries on your financial accounts and life insurance policies.

Step 5: Choose the guardians (if you have children)

The next step is to choose the guardians for your children. An guardian is a person who is selected to care for your children following your passing.

Step 6: Create a will.

Once you have your lists of assets and debts and your guardians in place, it is time to start creating the will in your estate plan.

Your will should include:

  • Assets and property - the property and assets you are passing on to your loved ones, from your 401(k) and your house deed to grandpa’s favorite watch.
  • Beneficiaries - the people who will inherit your property and assets.
  • Custodian/Trustee - an adult custodian who is named to manage money in a trust account on behalf of a beneficiary who is a minor.
  • Executor - Someone to manage your will and close your estate. An executor is also called an administrator or personal representative
  • Guardian - the person/people selected to take care of your kid(s) and pet(s).
  • Instructions on finances, distribution of money, and paying debts.
  • Additional funeral or burial instructions.
  • Gifts to individuals or charities.

Step 7: Complete your estate plan.

With your will completed, you can work on creating the following documents:

  • Power of Attorney
  • Executive Power of Attorney
  • Medical Power of Attorney
  • Financial Power of Attorney
  • A Living Will
  • Last Will And Testament

Step 8: Share your estate documents with your trusted contacts.

Your estate plan documents are finished. You have made it to the last step. Now, it is time to make sure that the people you have chosen to manage your affairs have the information they need to do so. By uploading your information in TrustLoKR and sharing this information with your trusted contacts, you can be assured that the right people of all the information they need to execute your wishes.