Estate Planning Awareness Week ends today, October 22nd. From a layperson’s perspective, estate planning is making sure you have the necessary permissions to have people help you when needed. Your state of residence will determine the laws used to guide you when drafting your legal documents.
Estate Planning helps you document officially (legally) your end-of-life wishes, select who can act as you and/or decide for you if you’re alive and not fully functioning pertaining to medical decisions, pay your bills and take care of financial decisions, care for your minor children, your pets, and your business if you have one, make sure people know how you’d like things handled if you’re unable to do so, and take care of day to day life.
The estate planning process can seem confusing and overwhelming. It can also sound “fancy”, and too much to take care of your stuff. Let’s correct the record, If you have a bank account, it’s wise to get things on paper to make sure you have help when needed!
Today in America, approximately 67% of Americans have not created a will/trust. What does this mean? For starters, without documentation of your wishes/preferences about your dependents, your finances, your health and your property, NO road map exists for those who care about you if you were to be in an accident or no longer be with us. Without a road map, confusion rules the day, and the courts get involved (time and expenses not planned for).
Tips to Get You Started
Before you draft legal documents, it’s important to organize what you have now. Here are a few areas of life to help you get started.
- Document intangible property. These could be patents and patent applications, trade names and trademarks, service marks and copyrights. Take note that intangible property could be difficult to value, but you will still want to document it for your beneficiaries.
- Itemize physical assets. These include all forms of physical property and those with an objective market value like cash, real estate, vehicles and investments.
- List all of your debts. While part of your estate planning involves safeguarding your assets, another important part is to list your debts, since your executor will need to pay them off to avoid eating into the inheritance of your beneficiaries.
- Review retirement accounts. The money that remains in retirement accounts after you die can be transferred to a beneficiary. But keep in mind that the beneficiary who is designated on your retirement account will overrule anyone in your will. So make sure that all documentation reflects what you want.
- Update life insurance. Just like with a retirement account, the person who is designated as a beneficiary in your life insurance contract will overrule anyone else who is listed on your will. Do make sure that all documentation matches what you want.
- Appoint your beneficiaries. This is a critical step to ensure that your assets are distributed according to your wishes. Beneficiaries are individuals or entities who will inherit your assets. Review and update them periodically, particularly after significant life changes like marriages, divorces, births or deaths.
- Legal documents. The cornerstone of an estate plan is a Will (public document) which allows you to instruct others how you want your property and/or your dependent(s) managed; a Trust (private document) which allows you to also appoint guardians, beneficiaries, donate to people/charities, make end-of-life decisions and minimize taxes and state probate costs.
Each state expresses their views through law and the court system in each state interprets the law. It’s wise to take care of the business of life and document through an attorney your perspective. When you decide not to decide, you have made a choice to allow the court of your state of residence to decide for you.
Estate Planning Attorneys help you map out the whole process. Complexities exist when there are previous families, property, businesses, children/pets, special needs, and when we live/work abroad or have family from another country. I recommend working directly with an estate planning attorney to protect those you love and all you’ve worked for.
Image by Gerd Altmann from Pixabay
But Wait, There’s More!
I couldn’t resist that heading 😉 Think about your life and all you do everyday without thinking about it. That’s the more I’m thinking about.
Our daily lives consist of so much. If suddenly we encountered something to disrupt this, how could anyone step in to help us? By thinking of this before we need it, we empower ourselves to live now and allow others to help us if needed.
Yes, knowing the legal documents are up to date expressing your wishes provides a deep sense of security and safety. Making sure the little things are buttoned up is a bonus to the whole estate planning process from my perspective. What good are the documents if you don’t know how to find them?
If you’d like some help getting started I’ve designed an online 12-module program called Put Your Mind At Ease that will include monthly Live Q&A calls. These twelve sessions cover what is often overlooked in our day-to-day lives and provide ways people can protect and prepare before disruptions happen.
Each module features a video, a checklist, and a fillable PDF to complete. By completing one module per week, you’ll be on your way to leaving behind a “trail of breadcrumbs” whenever needed. The three Live Q&A calls provide you with a monthly check-in to clarify what’s needed and why this will help you in the long run and provide accountability by working together for 3 months. Think of what you can accomplish in 3 months 😉
Providing value and making sure someone is ready, willing, and able to begin is important to me. There are a few questions to answer before starting, to make sure we’re a good fit. If you know of anyone who might benefit from this program, please pass along the information found here: Put Your Mind At Ease
Have questions? Email or check out the website @ The Living Planner Here is a quote by Benjamin Franklin, “Success is the residue of planning” To your planning ❣️Lynn
#LifeHacks #EstatePlanning