Everyone, regardless of their age or stage in life, needs to have an estate plan that includes a will, trusts, a power of attorney and other estate planning documents. However, if you want to make settling your estate easier for loved ones, you’ll need to take a few more steps. A recent article, “From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook,” from Kiplinger, explains how estate planning helps loved ones navigate the emotional and bureaucratic challenges that follow your passing or manage if you are incapacitated.
An estate plan prepared by an experienced estate planning professional is vital. It minimizes probate and taxes, outlines precisely how you want your assets to be distributed, and includes essential documents needed in case of incapacity.
If you have a valid Power of Attorney, Healthcare Proxy, Living Will, HIPAA Authorization and related documents, your family won’t need to go to court to obtain a guardianship. No one likes to think of themselves as being in a vegetative state and being kept alive by artificial means. However, if this were to happen to you, does your family know what your wishes are, and just as importantly, will they have the legal authority to act on your behalf?
Even if you have all these documents properly prepared, there are still gaps to be filled. For instance:
- Does your family have an inventory of all your assets, including the names of the institutions, account names, numbers and values?
- Do you have an inventory of digital assets, including URLs, usernames, passwords and the ability to unlock devices that use facial recognition or two-party authentication to access assets?
- If your estate plan includes a trust, have you reviewed it recently to be sure it still works? Is the person named as your trustee or successor trustee still correct?
Many of your assets will not be subject to probate and will instead be distributed directly to the named beneficiaries. Are the people you named as beneficiaries on life insurance, retirement funds and any other accounts still living? Or have any relationships changed so they need to be removed, and others listed?
It’s essential to understand how financial institutions address inherited accounts. Some require assets to be distributed per stirpes, meaning a deceased beneficiary’s share passes to their children. Others take a per capita approach, splitting the inheritance equally among living heirs. How the assets are distributed could disrupt all your careful planning if this isn’t addressed.
Estate planning is an ongoing process that requires regular review and updates throughout your life. When it’s done properly, your family will have a clear understanding of your wishes and will be able to focus on supporting each other through a difficult time, rather than fighting over which flowers to choose at your funeral service.
Talk with an estate planning attorney to create an estate plan to help you and your loved ones. It’s a gift for you and your family, securing the future and your peace of mind.
Reference: Kiplinger (June 29, 2025) “From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook”