The Ultimate Estate Planning Checklist
What is Estate Planning?
Estate planning is a vital component to the retirement planning process. Specifically, it is characterized as the management and distribution of financial assets in the anticipation of death. While this term is sometimes used interchangeably with legacy planning, the difference between the two would be that legacy planning tends to have a greater focus on the non-financial aspects of an individual that define their life and purpose.
This process is important for everyone who is currently retired or near retirement, however, it can certainly feel overwhelming. This is why we have put together a quick guide of things you can do in order to effectively engage in estate planning with purpose and intention. When completing this checklist, the most important legal documents that you will likely need include a will, a trust, and power of attorney.
The Checklist
- Take Inventory of What You Own
- This includes physical assets like your house and the valuables within it. Examples might be your estates, car, expensive jewelry, etc.
- Document Intangible Assets
- This includes your financial assets and entitlements. Examples might be bank and brokerage accounts, 401(k) plans, life insurance policies, etc.
- List Debts and Financial Obligations
- This includes mortgages, loans, home equity lines of credit (HELOCs), and credit card balances.
- Note Your Memberships and Subscriptions
- This includes any clubs, associations, or recurring services that are tied to you or your estate. For example, you may be part of a veteran’s association, or you may choose to regularly support a particular charitable organization.
- Review Retirement Accounts and Insurance Policies
- You want to make sure that the beneficiaries that are listed here are up-to-date. You’ll also want to check that all terms are current.
- Authorize Beneficiary Designations
- To do this, you can set up a “Transfer on Death” (TOD) or “Payable on Death” (POD) for bank savings, CD accounts, and individual brokerage accounts.
- Appoint a Trustworthy Estate Administrator
- This individual will be in charge of administering your will and carrying out your wishes when you pass away, so it’s vital you decide on someone you can trust.
- Update Key Documents Regularly
- These include your will, powers of attorney, healthcare directives, and guardianship. It’s important to keep these up-to-date.
- Make and Share Copies
- Provide key documents to your estate administrator and store securely.
- Consult a Professional & Review Regularly
- Beyond your estate administrator, we recommend also meeting with a financial planner regularly regarding your estate plan.
Conclusion
In conclusion, while it may seem overwhelming, estate planning can be executed more successfully by following these 10 steps! Through creating lists, as well as appointing both an estate administrator and financial planner, this could create more peace of mind for both you and your beneficiary.
Ready to get started? Our financial planners can advise you through every step of the way, putting together a plan completely designed around your financial assets and your needs. Schedule a complimentary consultation today by calling our office at (803) 782-0671.
