If you've experienced a family member passing without a proper estate plan in place, you understand the challenges surviving relatives face when trying to unravel finances, final wishes, and more. Organizing and preparing your estate plan is a crucial and selfless task that is overlooked by 68% of Americans. In this article, we outline four essential steps for you to begin creating your estate plan. Let's get started!
It's important to start by taking inventory of your assets and debts. It's also valuable to organize associated documents and information for your family members or lawyers to easily access them later on. Begin by creating a list of your assets and liabilities to determine your current net worth. Your financial advisor may be able to provide a template for you to use.
Clarifying your wishes is beneficial for both you and your loved ones. While you can ensure your wishes are carried through, your children and loved ones won't have the burden of making difficult decisions after your passing.
Start by asking yourself some key questions to really understand what feels most important to you. Will your children or family receive your assets equally? Do you wish to allocate some of your assets to philanthropic causes, such as your favorite non-profit organization or alma mater? Documenting these wishes will help facilitate your estate planning discussion when you meet with your estate attorney.
Certain religions have specific requirements and traditions for arrangements after death. If you're not planning a religious celebration of life, you may still have some requests for your service. Informing your estate attorney and advisor of these traditions and wants is crucial to ensure they're seen through.
Additionally, it's also important to discuss your organ donation status with your estate executor. If you are an organ donor, your funeral proceedings may take longer. Your estate attorney can help create a living will directive that specifies and limits which organs can be donated for medical needs, research, and education, as well as the timing of these donations. It's important to make sure that your healthcare professionals, as well as your healthcare surrogate or healthcare power of attorney, have copies of this directive as well.
Having a team of professionals to help you create your estate plan can alleviate additional stress and questions. Who should your estate planning team consist of? First, having a fiduciary financial planner who understands your financial assets and long-term goals can help you along the way. Don't have an advisor? Complete the CPS Financial Planning Questionnaire to help you get started and chat with one of our knowledgable advisors.
In addition, it's important to add an estate planning attorney and certified public accountant to your team. Your estate planning attorney will be able to help you create your will or trust, as well as handle the distribution of your estate. Your CPA will advise you on tax considerations when it comes to your plan. With your financial planner, estate attorney and CPA, you'll have a supportive team that you and your loved ones can utilize as a resource.
Now, it's time to get started! While these steps are essential, there are many more involved in creating your estate plan. Download our free Estate Planning Checklist for a step-by-step checklist to help you create your estate plan today!