Critical Tips For Estate Planning

Estate Planning is one of those topics that adults put on the back burner of “things to do later.” Before discussing seven critical tips everyone should follow for Estate Planning, consider these five statistics from an article on Legal Zoom.

• Only 32% of Americans have a will.
• 41% of people between the ages of 18 and 34, and 34% of people between 35 and 54, have never discussed estate planning with anyone.
• American retirees expect to transfer more than $36 trillion to their families, friends, nonprofits, and additional beneficiaries over the next 30 years.
• 52% of people don’t know where their parents store estate planning documents.
• 60% of people without a will reported not taking any action to create a will and also haven’t made a living trust or any other estate planning document.

If you find yourself in the 68% of Americans who don’t have a will, as they say… “There is no time like the present.” However, in addition to completing a will, our iWealth team strongly encourages our clients to do proper estate planning. Here are seven things to consider when approaching how to make a plan for your estate and help it transfer to your loved ones.

Create A Comprehensive Will or Trust

A will is the foundation of any estate plan, dictating how your assets should be distributed after your death[1][4]. Consider establishing a living trust as well, which can help avoid the probate process and provide more control over asset distribution.

Designate Beneficiaries and Keep Them Updated

Regularly review and update beneficiary designations on retirement accounts, life insurance policies, and other financial assets. These designations typically supersede instructions in your will, so keeping them current is crucial.

Establish Powers of Attorney

Designate someone you trust to make financial and healthcare decisions on your behalf if you become incapacitated. This includes creating a durable power of attorney and advance medical directives.

Inventory Your Assets

Create a detailed list of all your physical and non-physical assets, including bank accounts, investments, real estate, and personal property. This will help ensure nothing is overlooked in your estate plan.

Plan for Long-Term Care

Consider potential long-term care needs and explore options like long-term care insurance to protect your assets and have confidence you will receive proper care in the future.

Assemble a Professional Team

Work with experienced professionals, including a financial advisor, tax professional, and estate planning attorney, to create a comprehensive and legally sound estate plan.

Review and Update Regularly

Life changes, such as births, marriages, divorces, or significant financial shifts, necessitate updates to your estate plan. Review your plan every 3-5 years or after major life events so that it remains current and aligned with your wishes.

By following these critical tips, you can create a robust estate plan that protects your assets and will carry out your final wishes effectively. If you need help figuring out your estate plan and how to transfer your assets to your loved ones, as well as the causes you care most about, please schedule an appointment with one of our iWealth Advisors, as we would love to help.