How to Create a Comprehensive Estate Plan in Five Steps

Those who live or work in the heart of high-tech corridors are often future-focused, with innovation at the center of their world. However, planning for the future should include estate planning to ensure that assets are distributed according to your wishes, rather than according to the laws of your state. A recent article from Puget Sound Business Journal, “5 essential steps to craft a comprehensive estate plan,” offers the five key steps that every adult needs to take to create an estate plan.

Create an inventory of assets. Today’s inventory includes tech investments, real estate, cryptocurrency, life insurance, retirement accounts, personal property and the contents of a safe deposit box. This information will help your estate planning attorney know what planning tools will best suit you and your family. A complete inventory will also be required by your executor to settle your estate, regardless of how far off that may seem.

Asset ownership and beneficiaries. Knowing what you own and knowing how you own it are two different things. If you live in a community property state, for instance, each spouse owns half of the property purchased during the marriage. However, if you own property as Joint With Right of Survivorship (JWROS), the property will pass to the surviving spouse without going through the will.

Estate planning includes reviewing beneficiary designations. Life insurance, retirement accounts and investment accounts typically allow you to name beneficiaries who will receive the assets directly upon your death. These designations override any wishes expressed in your will. Be sure they are current and review them periodically to ensure accuracy.

Plan for guardianship of minor children. Your will is used to name a guardian for any minor children. If you don’t have a will and you have young children, the court will decide who will raise the children in the event of both parents dying. If you have young children and no will, you must take care of this as soon as possible.

Power of Attorney for Financial and Healthcare Decisions. Part of estate planning is to protect you while you are living, but not able to speak on your own behalf. An estate plan typically includes a Power of Attorney to name someone to manage your financial affairs and a Healthcare Proxy or Healthcare Power of Attorney to designate a person of your choice to make decisions and participate in your medical care in the event of incapacity. Both documents should be crafted to reflect your personal wishes.

Discuss your estate plan with family and advisors. Death and illness are not as pleasant to discuss as your latest exotic vacation. However, it’s important to let certain family members or trusted friends know about your estate plan. For instance, your executor should be aware of the location of your will and the type of memorial you wish to have. Discussing your wishes can help prevent misunderstandings and even litigation.

Estate planning requires maintenance, just like your home or car. As you go through the different stages of life, your estate plan needs to adapt. Conducting a regular review every three to five years ensures that your estate plan accurately reflects your wishes and provides for the care of your loved ones.

Reference: Puget Sound Business Journal (March 17, 2025) “5 essential steps to craft a comprehensive estate plan”

Can I Include Digital Assets in My Estate Plan?

From a bird’s-eye view, digital assets encompass digitally stored documents, electronic communications, loyalty programs, airline miles, photos, videos, social media accounts, cryptocurrencies, subscriptions, online businesses and accounts provided by service providers (e.g., Facebook, Instagram, GoDaddy).

If this sounds overwhelming, imagine how taking care of this asset category will feel to your executor if you haven’t prepared a full inventory as part of your estate plan. A recent article from The National Law Review, “5 Ways Estate Attorneys Can Bring Order to Their Clients’ Digital Asset Chaos,” outlines the necessary steps to organize your digital affairs.

Clarify your digital asset status. In addition to the items listed in the first paragraph, you may own domain names, digital recordings and content, or conduct business on sites such as Amazon, engage in cryptocurrency, NFT, or gaming token transactions, to name a few. If you spend five minutes on the internet, you also have NIL—name, image and likeness, which is a digital identity.

Your estate planning attorney will ask if you use online bill pay for recurring expenses, how you store photos and videos, how extensively you use social media and if you have created a digital inventory in case someone needs to access this information to manage your estate or pay bills in the event of incapacity.

Make an inventory of digital assets. A thorough inventory of digital assets begins with hardware and ends with apps. This includes any devices where you store or access information, such as desktop and laptop computers, tablets, mobile phones, external hard drives, e-readers, digital cameras, gaming devices, smart home systems and flash drives. Cryptocurrency owners will also have online wallets.

Next, map out where data exists. This likely includes cloud services, such as Google Drive and Dropbox, as well as local hard drives, backup systems and applications.

Online accounts and digital assets encompass a wide range, from email to utilities, cryptocurrencies and NFTs, bank accounts, investment accounts, social media platforms, Venmo, PayPal, subscriptions, transportation apps and any other online activity, accessible on any device.

Creating an inventory might be easier if you scan and print emails for receipts and password reset links to uncover any forgotten accounts. While some people no longer print anything, this might be a good exception to make to help your executor’s tasks easier.

Determine your directives for each account. What makes this process more complicated is the different values ascribed to different digital accounts. A long-unused library application, for instance, doesn’t need to be treated in the same manner as the portal where you store your financial information. However, both require attention. Some accounts may need to be deleted in the interest of privacy, while others, like photos and videos, you may want to share with family members. None of this information should be included in your will, which will become a public document. It should instead be part of a digital estate plan.

Name a savvy executor who is comfortable in the digital world. Identifying traditional assets can be challenging without an inventory. However, identifying digital assets is even more complex: there is no paper trail. For those with significant assets, it may be wise to empower your executor to retain a technical advisor to help unravel a digital estate.

Make it legally binding. A bare-bones estate plan typically includes a will, a revocable trust and financial and healthcare powers of attorney. An estate plan that includes digital assets should provide clear directions about who will manage these assets. Speak with your estate planning attorney about how to maintain the inventory of assets and manage updating it as assets change at a more rapid pace than traditional assets.

Reference: The National Law Review (March 21, 2025) “5 Ways Estate Attorneys Can Bring Order to Their Clients’ Digital Asset Chaos”

Good Parenting and Estate Planning Work Together

Wealth created by one generation is often lost by the third generation when financial discipline, respect for the process of wealth creation and understanding the responsibilities of wealth aren’t taught from generation to generation. There are ways that parents can help their children and grandchildren overcome this tendency, and estate planning strategies are part of the process, says a recent article from Barron’s, “Teach Your Kids to Preserve Family Wealth, Not Squander It.”

Preparing to transfer wealth is best done with an experienced estate planning attorney. In addition, an annual letter to your children with a summary of the family’s financial situation and a statement of the parent’s values will help educate and update the family.

The annual letter should also share info about where to find wills and trusts and other estate planning documents, contact info for the estate planning attorney, financial advisor and accountant, and the location of life insurance policies. Don’t neglect an inventory of digital assets, their value and how to access them.

Trusts offer an opportunity to express values by creating a trust with incentive provisions and age-related triggers. When a beneficiary reaches certain milestones, like graduating from college or getting married, distributions can be made. There are also means of discouraging problematic behaviors. Provisions may be written to delay distributions until a beneficiary retains a job or enters a rehabilitation program and maintains sobriety for a certain period. Your estate planning attorney will discuss which type of trust is best for your family.

Start by defining your own family’s values and what it looks like to put those values into real-life scenarios. For instance, if you value entrepreneurial spirit, a trust could be created with discretionary distributions and non-binding language encouraging heirs to use the funds to start or expand a business. A trust could also encourage children to buy a home in a community with an excellent school district to benefit their children.

Stating these models without living them defeats the end goal. Children learn values by seeing how their parents behave. These lessons are learned early in life.

For high-net-worth families, avoiding a sense of entitlement is a major challenge. This is where generations lose a work ethic and wealth. Good parenting can avoid this by encouraging children to become resilient and allowing them to fail in safe settings. Developing confidence based on their abilities, whether in academics, sports, or community efforts, will foster a sense of self and independence not based on the family’s wealth.

For regular families intent on building wealth over generations, a healthy respect for the work it takes to build bank accounts, buy a home and create the stability needed for the future takes extra effort. Creating an estate plan with an experienced estate planning attorney can help you plan for the unexpected.

Reference: Barron’s (Feb. 7, 2025) “Teach Your Kids to Preserve Family Wealth, Not Squander It”

Decluttering after Loved One’s Death: A Practical and Emotional Guide

Losing a loved one is never easy, and handling their estate can feel overwhelming. Beyond probate’s legal and financial aspects, families must also address the personal belongings left behind. Every item holds memories, and deciding what to keep, donate, or discard can be emotionally challenging.

While decluttering is necessary, it does not have to be overwhelming. With patience, organization and legal guidance, families can navigate this process in a way that honors their loved one’s legacy, while ensuring a smooth estate administration.

Understanding the Probate Process and Personal Belongings

Before decluttering, spend time learning how probate affects the distribution of assets. Probate is the legal process that ensures debts are paid, and assets are distributed according to a will or state laws if no will exists.

When to Begin Decluttering

Many families are urged to begin sorting through belongings immediately after a loved one passes. However, specific legal steps must be followed first. The executor of the estate—or administrator if there is no will—must:

Verify that a will exists and file it with the probate court
Obtain legal authority to manage and distribute the deceased’s assets
Identify which items are part of the probate estate and which pass directly to beneficiaries

Some belongings, such as jointly owned property or accounts with named beneficiaries, may not be subject to probate. Consulting with a probate attorney ensures that assets are handled correctly and that families do not unknowingly dispose of legally protected items.

A Step-by-Step Approach to Decluttering

Step 1: Create an Inventory

List all significant belongings and sentimental items, especially those with financial or legal significance. This includes:

Jewelry, antiques and collectibles
Financial documents and insurance policies
Family heirlooms and personal memorabilia

An inventory helps prevent disputes among family members and ensures that valuable or sentimental items are accounted for before decisions are made.

Step 2: Identify What to Keep, Donate, or Discard

After creating an inventory, begin sorting belongings into categories. While every family’s process will be different, a structured approach can make decluttering more manageable:

Items to keep – Family heirlooms, meaningful photographs and personal mementos
Items to donate – Clothing, furniture and household goods in good condition
Items to discard – Broken, outdated, or unusable items

Open discussion can prevent conflicts if multiple family members want the same item. Some families choose to rotate selections, allowing each person to select keepsakes.

Step 3: Seek Professional Guidance for High-Value Items

Some belongings may hold significant financial value. Consider having them appraised before selling or donating items such as artwork, antiques, or real estate. A probate attorney can also help determine whether certain assets require special handling under the law.

Emotional Challenges of Sorting through a Loved One’s Belongings

Managing Grief During the Process

Decluttering after a loved one’s death can trigger unexpected emotions. Items like handwritten letters, old clothing, or favorite books carry deep sentimental value, making it challenging to decide what to part with. It’s essential to recognize that grief affects decision-making, and taking breaks or seeking support when needed is okay.

Avoid Family Disputes

Inheritance disputes are one of the most common challenges during estate administration. Even if a will is clear, emotional attachments can complicate decisions. To avoid conflict:

Hold a family meeting to discuss how belongings will be divided
Use written agreements when distributing valuable items
Consider mediation or legal assistance, if disagreements arise

Clear communication and legal guidance ensure that the process remains fair, respectful and free of unnecessary conflict.

When Is Legal Assistance Needed?

While decluttering is a personal, family-driven process, some situations require legal intervention. It may be time to consult a probate attorney if:

There are disputes over high-value belongings or sentimental items
Uncertainty exists about which belongings are included in the probate estate
Legal documents, such as wills or trusts, need to be reviewed to ensure proper distribution

A probate attorney ensures that all legal obligations are met, while helping families move forward without unnecessary delays or disputes.

Plan for College and Protect Your Assets

Balancing college savings, estate planning and financial aid eligibility requires careful planning. Schedule a consultation today to ensure your family’s financial future is secure, while maximizing education opportunities for your children.

Key Takeaways

The probate process impacts decluttering: Some belongings must go through legal steps before being distributed or removed.
A structured approach makes decluttering easier: Creating an inventory and sorting items into categories reduces stress and ensures fairness.
Emotional attachments make decision-making difficult: Recognizing the role of grief and allowing time to process emotions is essential.
Family disputes can arise over sentimental belongings: Open communication and, if needed, legal mediation can help prevent conflicts.
Legal assistance ensures smooth estate administration: A probate attorney can clarify ownership, resolve disputes and guide families through complex legal requirements.

References: Joseph Stern, M.D. (April 18, 2023) “Grief Cleaning: How to Separate Memories from Things While Decluttering” and Empathy “It’s the little things: Dealing with keepsakes”

Does Your Estate Plan Include Digital Assets?

Technology has changed many aspects of estate planning from the lawyer’s point of view. It’s as easy to meet with clients on a video call as in person, and documents can be reviewed and shared through a secure document portal. Estate planning attorneys now include digital assets as well as traditional assets, like real estate and financial accounts. A recent article from Cape Gazette, “Estate Planning for Digital Assets,” explains how to address digital assets.

The definition of digital assets itself is constantly evolving as new assets are added, but for the most part, they include:

Electronic communication: emails, social media posts, blogs
Reward programs: credit cards, airline miles, hotels.
Financial accounts: PayPal, Venmo, online investment and banking accounts
Digital asset collections: music, videos, photos
Intellectual property: domain names, articles, books, artwork, videos
Electronically stored data

The rules of ownership of data and the platforms holding the data are more complicated than most people think. The law attempts to balance the privacy of the original owner or creator of the data and a fiduciary’s need to access assets after the original owner’s death or incapacity.

Every time you create a digital asset, you are asked to agree to a contract, known as a Terms of Service Agreement or TOSA. This is usually presented as a long page of small type with a box to check to state you agree to the terms. With a single click, you’ve agreed to the terms of a legally binding contract prohibiting another person from accessing the account. Even if your executor or Power of Attorney has a username and password, they may not have the legal authority to access your digital accounts, although some states have passed laws to give fiduciaries some authority to access digital assets. Your estate planning attorney will know the law in your jurisdiction and incorporate this into your estate plan.

For your estate plan to protect digital assets, you’ll need to start by creating an inventory of all assets with this information:

What type of asset
Where it can be found (the URL address)
User name
Login information
Does it require two-factor authentication, which verifies the user using a text to a mobile phone or email address?

You’ll also want to review each digital asset to see if there is any provision for assigning someone to manage your account in case of incapacity or death. Some of the larger platforms offer this ability, which is far easier than going to court to obtain photos from a loved one’s cell phone.

Another step to protect your digital assets is to name a digital executor through a Power of Attorney, so they can act on your behalf. It would be prudent to ensure that the POA includes a specific provision expressly providing the authority to access digital assets. This is required in some states.

Your estate planning attorney will help you protect your digital assets as part of creating a comprehensive estate plan.

Reference: Cape Gazette (Feb. 7, 2025) “Estate Planning for Digital Assets”

Discussing Estate Planning in the Holiday Season

With so many families living in distant states, the holiday season is often the only time everyone is together. A family gathering can provide a chance to talk about major life changes and plans for the future, including estate planning issues. It can be tricky to navigate. However, some conversations are simply better in person. A recent article from Independent Record, “How to tackle estate planning with loved ones this holiday season” outlines topics to cover.

Beneficiary Designations. Upon opening savings, investment and retirement accounts, an option is usually provided to name a beneficiary. This tells the financial institution who is to receive the asset upon the owner’s death, similar to how a beneficiary is named on a life insurance policy. There are often contingent beneficiaries if the primary has died or does not want to receive the assets.

Beneficiary designations should be checked every few years and when certain triggering life events occur, like death, divorce, or marriage. Some financial institutions have default beneficiary designations, so the owner should also have this information. The beneficiary receives these assets outside of the will, avoiding probate in most cases. Tax treatments of these instruments may differ, so they should be reviewed with an estate planning attorney to see how they work with the estate plan.

Power of Attorney. The POA is a document allowing an individual to name someone to make decisions on their behalf if they are incapacitated. This document should be discussed with the chosen person, usually a spouse, adult child, trusted friend, or an estate planning attorney, with their consent. If there are issues with family members, a non-family member may be a better choice.

There are different types of POA. A durable POA takes effect immediately and doesn’t expire. A non-durable POA is valid for only a specific period of time. The healthcare POA, also known as a healthcare proxy, is also needed for another person to be involved in medical care: spouses are not automatically given these rights. A HIPAA release form should also be in place, so the POA can talk with doctors and others involved in medical care.

Wills and Trusts. If there is no will, the person’s assets are distributed according to the laws of the state, which, in most cases, is decided based on kinship. Most people opt to have a will to decide how their assets are distributed.

Trusts establish a separate legal entity managed by a trustee, who also oversees distribution at the time indicated in the language of the trust. Unlike a will, assets in a trust are distributed privately and outside the court system, meaning they don’t pass through probate. An experienced estate planning attorney creates a trust to meet the specific needs of the grantor.

It’s a good idea to talk about these issues while the family members are well and able to discuss them with a clear head. An estate planning attorney will help with guidance and could also help figure out how to navigate issues when potential conflict exists. During and after the holiday season, estate planning protects loved ones and ensures that wishes are followed.

Reference: Independent Record (Nov. 25, 2024) “How to tackle estate planning with loved ones this holiday season”

How to Avoid Estate Planning Mistakes in 2025

Even if you could remove all of the emotions about estate planning, like considering your eventual demise and the possibility of incapacity, it can still feel a bit overwhelming. Having an experienced estate planning attorney on your team makes the process far easier, with the knowledge you’re in good hands. A recent article from GO Banking Rates, “4 Expert Insights on Avoiding Estate Planning Pitfalls for 2025,” explains how estate planning helps to avoid family fights, lost assets and legacies.

Estate Planning encompasses your entire life. Wills express how you want assets to be distributed, and trusts minimize taxes by taking assets out of the probate estate. However, an estate plan is more than these two pieces. Estate plans include incapacity plans, caring for children and transferring wealth in a number of ways.

If someone becomes incapacitated and hasn’t created a Durable Power of Attorney, no one can manage non-healthcare matters, from paying utility bills to maintaining their home. A family member must go to court to obtain guardianship to do anything.

Every estate plan should include a Healthcare Power of Attorney and HIPAA release authorization so a designated person can be involved with their loved one’s healthcare, talk with their doctors and be involved in any medical decision-making.

Keeping beneficiary designations up to date. Beneficiaries aren’t just the people you name in a will. Designated beneficiaries are those listed on retirement accounts, investment accounts, life insurance policies and other documents to receive assets when you die. Make sure these names are up to date, especially if you haven’t reviewed them in years. Any account with a beneficiary designation does not go through probate, and your will has no control over these assets.

Things will get messy if beneficiaries on your accounts are no longer in your life. Assets could go to an ex-spouse, an estranged family member, etc.

Choosing your executor with care. Many people get stuck when there is no obvious person to manage this task. An experienced estate planning attorney can help you work through this issue, since a poor choice could put your entire estate plan at risk. Whoever you choose to serve as executor—the person who manages your estate—will need to deal with financial institutions, family members, government agencies and every facet of your life. Many automatically name their eldest child or best friend, which might lead to disaster if they are not available, good with details, fiscally knowledgeable, or able to manage your family’s personalities. Ensure that they are up for the task and also have a backup executor named.

Introduce your family to your estate planning attorney, financial advisor, CPA and other professionals in advance. The people who help you manage the business side of your life will be able to help you better if family members know who they are, how to contact them and have already met them. They don’t have to be friends. However, making introductions in advance can make their work together easier.

Reference: GO Banking Rates (Nov. 17, 2024) “4 Expert Insights on Avoiding Estate Planning Pitfalls for 2025”

Probate for Real Estate in Multiple States: Managing Assets

Probate is complicated. However, things can get even trickier when managing real estate in multiple states. If you own property outside your home state, your heirs may face extra steps in settling your estate. Here’s a look at how probate works for real estate in multiple states and how you can help your loved ones avoid these challenges.

What Is Probate?

Probate is the legal process of distributing a person’s assets after death. For real estate, probate involves the court supervising property transfer to the rightful heirs. This can take months or even years, depending on the complexity of the estate. When real estate is involved, mainly if it’s located in more than one state, it can complicate matters even more.

Each state may require a separate probate process when you own property in multiple states. This means your family could deal with probate proceedings in several locations, which can add time, legal costs and stress.

Probate Across States

If you own property in a state other than where you live, your estate could go through two different probate processes—one in your home state and another in the state where the property is located. This is called “ancillary probate.” The probate process in your home state handles all your other assets, but any real estate outside of your state is subject to the probate laws where the property is located.

Each state has rules for probate, including who can inherit property and how long the process takes. If you don’t plan, your heirs could face additional delays and legal fees as they navigate probate in multiple states.

Can You Avoid Probate in Multiple States?

According to Forbes, there are ways to avoid probate for real estate, even if it’s located in different states. By planning, you can save your heirs time and money. Here are a few options:

Should You Use a Revocable Living Trust?

One of the most effective ways to avoid probate is to create a revocable living trust. This allows you to transfer your real estate ownership into the trust while still alive. You remain in control of the property during your lifetime. After you pass away, the property goes directly to your beneficiaries without going through probate.

Creating a revocable living trust requires some legal work. However, it can be a much simpler and faster way for your heirs to receive the property after your death. It can also help them avoid the costs and delays of ancillary probate.

Is a Transfer-On-Death Deed Good for Real Estate Inheritance?

In some states, you can set up a transfer-on-death (TOD) deed for real estate. This allows you to name a beneficiary who will automatically inherit your property when you pass away. A TOD deed can be more affordable and straightforward to avoid probate. However, it’s unavailable in every state. If you own property in multiple states, you must check if each allows TOD deeds.

Avoiding Probate with Co-Ownership

Another way to avoid probate for real estate is by co-owning the property with someone else. If you and your spouse, for example, own a home together, the property might automatically transfer to the surviving spouse upon your death without going through probate. However, this option only works for certain types of co-ownership, so knowing how your property is titled is essential.

When You Should Seek Legal Help

Dealing with probate for real estate in multiple states can be complicated. Every state has laws and rules about how probate works and how property is transferred. Talking to a probate lawyer is good if you own real estate in numerous states. They can help you understand your options and create an estate plan to make things easier for your loved ones.

Protect Your Property Across State Lines — Start an Estate Plan Today!

Planning is essential to ensure that your family avoids the stress and costs of probate; a probate lawyer can help you explore your options, whether creating a living trust, setting up a TOD deed, or exploring co-ownership strategies. Contact our law firm today to request a consultation and start planning to protect your real estate and other assets.

Key Takeaways:

Simplify the probate process: Avoid multiple court proceedings for real estate in different states.
Save time and money: Keep your heirs from dealing with costly and lengthy probate.
Maintain privacy: Keep your real estate transfers out of the public record with proper estate planning.
Ensure smooth asset transfer: Use trusts, TOD deeds, or co-ownership to help your family inherit without the hassle.
Protect your loved ones: Plan with the help of a probate lawyer to minimize future legal challenges.

Reference: Forbes (Aug. 23, 2024) “A Guide To Probate In Real Estate: What You Should Know”

Wealth Protection Through Estate Planning

Without a well-prepared estate plan, wealth can be lost to taxes, administrative costs, or disputes among heirs, both in and out of court. With an up-to-date estate plan, changes to tax laws are proactively addressed and wealth can be protected and passed across generations. A recent article appearing in Medical Economics, “Estate planning is your first line of defense against wealth loss—Here’s what you should know,” explains how an estate plan creates a framework to minimize taxes, avoid the costs and complications of probate and ensures that your wishes for your estate are followed.

Documenting assets is one task that is done when creating an estate plan. When records are not clear, transferring assets can become complicated. A comprehensive record-keeping system can store documents like deeds, life insurance policies, asset inventories, family videos and photographs online.

Many financial records are already online through client portals by major financial companies. The key to incorporating these records into an estate plan is remembering where all the information is stored and being willing to share access information with a trusted family member or friend. The person you name as an executor of your will or a trustee for a trust is the most likely candidate to be provided with this information.

There are many steps to having a solid estate plan. However, there are also many missteps. Here are some of the most common pitfalls to avoid:

Failing to update an estate plan. All the documents in your estate plan, including a Will, Power of Attorney, Healthcare Proxy, HIPAA Release Form, Trusts, Advanced Directives and more, must be updated to comply with changing laws and changes in your life.

Making a careless decision about the executor or trustee can be disastrous. The eldest child does not have to be the one to be in charge of your estate. Neither does the person you love if their life is a trainwreck. The person to be named executor and/or trustee needs to be someone you know to be extremey

Wly responsible, reliable, good with money management and a solid moral compass.

Digital assets are often ignored when it comes to estate planning. However, this new asset class needs to be included. If you have email, you have a digital asset. You have digital assets if you have email, cryptocurrency, websites, social media content, online subscriptions and photos stored in the cloud. Suppose no plan is made to create an inventory of accounts and name a digital executor. In that case, your estate becomes vulnerable to identity theft, valuable cryptocurrency could be lost forever and there may be nothing your loved ones can do.

Most family fights have to do with unequal asset distribution after the death of a parent. A clear estate plan is one way to preclude confusion about what you want to happen after death. Talking about your estate plan while you’re still able to have these uncomfortable discussions is one way to help establish your wishes. You may want to create a Letter of Intent or make a video to express your reasons for making certain decisions. This may not be legally enforceable. However, it will serve to document your wishes.

Estate planning is not just about distributing assets after death. By establishing an estate plan, the family is better prepared to deal with the loss of a loved one and can focus on healing together instead of battling over their inheritance.

Reference: Medical Economics (Oct. 17, 2024) “Estate planning is your first line of defense against wealth loss—Here’s what you should know”

Millennials Need Estate Planning

One family jokes about their mother’s large blue binder, affectionately calling it “Mom’s Book of Life.” She has assembled physical copies of estate planning documents, including medical directives for next of kin, account information, passwords and a list of assets. Her adult children thought they were too young to deal with such matters, reports a recent article, “I’m Way Too Young For Estate Planning. Or Am I?” from The Wall Street Journal. On reflection, they realized they, too, needed an estate plan.

Someone as young as 18 could benefit from having an estate plan, and someone in their 30s definitely needs one. Once a young person becomes a legal adult, their parents no longer have any say in financial or health matters without properly prepared estate planning documents.

Everyone over 18 should have an advanced healthcare directive, sometimes called a healthcare proxy or healthcare power of attorney. This allows people of your choosing the ability to make decisions about your healthcare if you become incapacitated: too sick or severely injured and unable to communicate your wishes.

Adults of all ages also need a power of attorney. This document gives another person the legal authority to access and manage your finances in case of incapacity.

A will, also known as a last will and testament, is needed to direct how you want your assets to be distributed after death. Even if you don’t own a home or car, chances are you have some personal property and may want specific people to receive certain items. Creating a will and getting used to the concept of planning for the future is a good habit.

If you have an extensive online life, digital assets will also require some planning. An inventory of your digital assets, including email accounts, apps, social media, cryptocurrency, photos, videos, etc., should be created, so a digital executor can manage the accounts. Some platforms permit naming a legacy contact, while others require specific directions on what should be done with your content.

Student loans, 401(k)s from employers and other financial accounts should be inventoried. However, this information doesn’t go into the will. The will becomes a public document once submitted to the court for probate, so any specific account information should be kept in an inventory of assets and debts.

Creating an estate plan can open a conversation with older relatives and parents about their plans for end-of-life care, a difficult but important dialogue. Talking about their wishes before something happens will allow you or other relatives to know beforehand, rather than spending the rest of your life worrying about a decision made in an emergency situation.

Estate plans need to be changed as you go through your life. New partners or spouses may need to be added, or a deceased parent may need to be removed as an executor. Getting used to addressing these life matters is part of being a responsible and loving adult.

Reference: The Wall Street Journal (Oct. 18, 2024) “I’m Way Too Young For Estate Planning. Or Am I?”

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