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Do These 7 Things Now to Protect Your Estate [+ Estate Planning Checklist]

[Updated June 15, 2023]

Both Prince and Aretha Franklin died without a Will. This meant their children’s inheritances were long-delayed and highly contested. James Gandolfini (aka Tony Soprano) died shockingly in 2013 at age 51. His estate plan was still in progress when he suffered a fatal heart attack while in Italy. His children faced added complications, legal scrutiny, and unnecessarily high estate taxes.

But estate planning tips are not just for the rich and famous. Multi-millionaire or not, everyone knows they need a plan for what happens after they’re gone—but no one wants to do it. Whether it’s a fear we don’t want to face, or we’re simply not sure where to start, estate plans often fall by the wayside. 

If you don’t have an estate plan, or you haven’t touched yours in several years, it’s time to take a fresh look. Read this estate planning checklist for the seven things you should take care of ASAP. This goes double if you’ve recently gotten divorced or remarried, had additional children, or acquired significant new assets. 

Estate Planning Checklist 

Understanding all the moving parts and gathering your information is half the battle. Whether you’re estate planning for the first time or you have an old plan that’s been languishing, having a simple estate planning checklist helps you get organized without feeling overwhelmed. 

1. Take Inventory of Your Assets 

Write down everything you own that’s of value, both tangible and intangible. Keep a running list and add to it as you remember things or add assets to your portfolio. A thorough inventory will ensure nothing is left out. 

Tangible assets might include:

  • Homes and other property
  • Land
  • Vehicles (cars, RVs, boats, motorcycles, etc.)
  • Furniture
  • Jewelry
  • Art 
  • Securities like stocks, bonds, and cash
  • Assets in retirement investment accounts such as 401(k)s, IRAs or ETFs
  • Other physical items of value

Intangible assets might include: 

  • Patents
  • Trademarks
  • Copyrights
  • Intellectual property

If you have any liabilities, like mortgages or lines of credit, go ahead and list those too. Any debts you have will come out of your estate after your death.

2. List Family Members

While it’s not likely you’re going to “forget” about any of your family members, writing them down is important. Also note any special plans you want to make for your surviving spouse, assistance for a child with special needs, and guardianship designations for any minor children or other dependents. You can do this via your Will and any life insurance policies or trusts you may want to set up.If you choose to write an ethical will or legacy letter, note that here as well.

If you have furry family members, write them down too! It’s possible to make detailed provisions for your pet as part of your estate plan. 

3. Choose Your Advance Directives 

It’s a good idea to have a designated person to make decisions in the event you no longer can. Consider legal documents like durable financial power of attorney, medical power of attorney, or a living will. Choosing to put directives in place is a personal decision. But having a plan can make things easier on your family members in an already stressful time. 

Before putting directives in place, talk to the people you plan to name as agents to make sure they are willing, able, and aware of what’s expected of them. 

4. Name Your Beneficiaries and Keep Them Updated

A beneficiary is a person or institution inheriting a piece of your estate, either tangible or intangible. You’ll want to name beneficiaries on all your bank accounts, retirement accounts, and life insurance policies to ensure your money goes where you want it to. 

Would you want your ex-spouse to receive your inheritance? If not, make sure you keep your beneficiary designations up to date. Many people review them once per year or anytime they have a big life change.

5. Know Your State’s Laws

States have varying laws governing the distribution of assets upon a person's death. Make sure you understand your state's probate and estate or inheritance tax laws so you can safeguard your assets effectively. 

If your state imposes an estate or inheritance tax, you will definitely benefit from seeking professional assistance from a financial advisor or estate lawyer. They can guide you through the rules and recommend strategic measures to minimize taxes for your loved ones on their future inheritance.

6. Choose a Partner to Handle Your Estate Plan

Once you have a clear picture of who and what your estate includes, you may want some help putting plans into action. While you can create simple versions of legal documents online, many people enlist professional help to set up their estate plans (for example an estate lawyer, a financial planner, and potentially a tax advisor). 

These experts will streamline the process by handling the heavy lifting of preparing documents. They can advise you on rules specific to where you live and your financial situation. Most importantly, they offer strategic guidance to help you avoid any costly or painful mistakes.

7. Revisit Your Estate Plan Often

One of the most important, yet often overlooked estate planning tips is to keep your plan up to date. You’ll want to revisit your estate plan very time you experience a significant life event, such as: 

  • Moving to a different state 
  • Getting married or divorced
  • Major changes in the value of any assets (due to economic changes or buying a house, car, boat, etc.)
  • Changes in employment
  • Changes in your children or grandchildren’s marital status 
  • Birth of a child or grandchild
  • Formation, purchase, or sale of a closely held business
  • Receipt of a sizable inheritance, bequest, or similar disposition
  • Changes in insurance coverage
  • Changes in property ownership
  • Involvement in a lawsuit
  • Loss of a family member 
  • Retiring 
  • Health issues
  • Assisted living needs

We hope this estate planning checklist has been helpful. When it comes to planning for retirement, we’ve seen far too many people neglect making plans for their estate. 

Remember, it’s more for your surviving family members than it is for you. Your estate plan helps your loved ones avoid stress, disagreements, and high tax bills. It relieves them of responsibility and uncertainty in an already painful time.

Estate planning is part of a well-rounded retirement plan. Download your FREE Essential Retirement Guide to learn the seven things you need to do before retirement. 

Disclosure: For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based upon third-party data which may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Indices are unmanaged baskets of securities and are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Information from sources deemed reliable, but its accuracy cannot be guaranteed. Performance is historical and does not guarantee future results. Total return includes reinvestment of dividends and capital gains. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements, or representations whatsoever by us regarding third-party websites. Wealth Legacy Institute is not responsible for the content, availability, or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products, or services available on or through these third-party websites. The opinions expressed by featured authors are their own and may not accurately reflect those of Wealth Legacy Institute®. 

 

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