You’re never “too young” to make an estate plan! All adults, regardless of age, financial status, or phase of life, should have these plans in place. It can be a difficult topic to think about, but so incredibly important! If you were to pass away, an estate plan ensures your estate is handled efficiently, according to your wishes, and your loved ones are taken care of.
Steps
Here are the basic steps involved in creating an estate plan:
- Create a document, folder, or binder that includes everything your executor(s) will need to know. For example: Locations of bank accounts, investments, insurance policies, safety deposit box/key, and legal documents; list of non-cash assets and important passwords. Keep these records in a safe place, but accessible to your executor when needed.
- Select your team: lawyer, accountant, financial planner, executor(s), and guardian(s) of minor children.
- Have meetings with your lawyer, accountant, and financial planner to outline the specific plans and strategies.
- Talk about the plan with your loved ones, including the executor(s) and guardian(s).
- Keep updating the plan if any details change in the future.
Common Mistakes
There are a lot of details to think about when you're estate planning. After going through this process with our clients, we've seen three common mistakes:
- A missing, out of date, or poorly written will. Work with a lawyer to write these documents to ensure there is nothing left out and the wording won't cause confusion or misinterpretation.
- Poor record of assets. Your executors and loved ones might not already know every asset in your estate, therefore your records are crucial. Of course you don't need to include actual account numbers in this document, but the locations are important so they know where to go when the time comes. And don't forget to include your non-cash assets like properties, vehicles, and valuable collections.
- Poor choice of executors. Being an executor is a big job so your selection needs to be carefully considered. A good executor is a person that is trustworthy, well-organized, living nearby, able to handle the paperwork, and has good business sense. Since an estate plan should account for all possibilities, you should also select contingent executors in case your primary executor is unable to act on your behalf.
We know this process can be complicated and overwhelming, so we’re here to help! We offer estate planning services that are customized to your unique situations and relationships. Our discussions, recommendations, and research tools will make your planning simple, efficient, and worry-free.
To set up an appointment, email us at info@heartlandcpa.com or call us at 204-943-2441.
