Estate Planning
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An estate plan isn’t just for the wealthy; it’s a set of legal documents that ensures your wishes are honored and can simplify the distribution of your assets, regardless of their value.
Rethinking estate planning
What is an Estate Plan? An estate plan involves legal documents that ensure your wishes are carried out regarding anything you own that will be passed down, paid off, or otherwise managed after your death.
Estate planning for everyone: Estate planning isn't exclusive to the wealthy. Whether you have substantial assets or just a few, having a plan is important for managing your estate.
Cost-effective and simple: Creating an estate plan can be straightforward and affordable, especially when you consider the potential savings in time, effort, and money for your loved ones.
Minimize taxes: If you have significant assets, an estate plan can help reduce the taxes due from your estate.
Protection for all: Even if you’re young or have modest assets, a basic estate plan can prevent complications for your family, including designating guardians for minor children, setting up trusts, and passing on sentimental items.
Start planning today to ensure your wishes are honored and to simplify the future for your loved ones.
Key components to a typical estate plan
Creating and maintaining an estate plan ensures your wishes are fulfilled and minimizes the burden on your loved ones. Stay organized and make updates as needed to keep your plan current.
Will: This essential document names guardians for your minor children or dependents and specifies who will inherit your property. Once executed, the will is fulfilled and no longer valid.
Trust: Establishing a trust can ensure the ongoing care of your heirs or manage your assets. For instance, a trust can provide income for your spouse or support for a disabled child. Unlike a will, a trust remains effective even after your will has expired.
Health care directives: Depending on your location, consider both a health care declaration and a Power of Attorney for health care, which might be combined into an advance health care directive. These documents appoint someone to make health care decisions on your behalf if you become incapacitated.
Financial power of attorney: This document authorizes a trusted person or entity to manage your finances and property if you are unable to do so.
Beneficiaries: Ensure that your bank and investment accounts (e.g., savings, checking, IRA, retirement) have updated beneficiary designations to reflect changes in your life such as marriage, divorce, or adoption.
Life insurance: Regularly update your life insurance beneficiaries to align with your estate plan.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
