Checklist for estate planning how to#

Most other people will want enlist an attorney to help draft a last will and testament, however. For that reason, younger folks or people with very uncomplicated financial situations may be able to get by without wills.

Why you need to do it: Beneficiary designations will go a long way toward ensuring that your assets are distributed in accordance with your wishes after your death. What made sense a few years ago may not make sense today. Finally, revisit your beneficiary designations periodically to reflect changes in your situation. Just be sure that your designations sync with other aspects of your estate plan and that you’re giving due consideration when leaving assets to minor children and/or loved ones with special needs. Know before you go: You can name beneficiaries for your company retirement plan and IRA assets and use transfer on death/payable on death instruments for your taxable brokerage and bank accounts, respectively. Why you need to do it: Beneficiary designations will determine who ultimately inherits most of your major financial assets, trumping any bequests in your will or other parts of your estate plan.

Checklist for estate planning how to#

Keep your master directory up to date and alert a (preferably younger) trusted loved one to its existence, as well as how to access it in a pinch. Because your master directory is chock-full of sensitive information, be sure to password-protect the document or keep any physical versions under lock and key. If you use your own spreadsheet, consider appending a separate tab with details on your digital affairs, including usernames and passwords for sites where you store data, photos, and other valuable information. Know before you go: You can use this template as a guide to setting up your master directory or craft your own using a spreadsheet program. If you meet with an estate-planning attorney, for example, they will start the process by having you list your major assets and liabilities. Moreover, a master directory can serve as the foundation for any other aspects of your estate plan. Having such a document helps ensure that if something happened to you, either death or disability, your loved ones wouldn’t have to do any sleuthing to find your assets and be aware of any debts you owe. Why you need to do it: A master directory, while not part of the official estate-planning lexicon, is simply a document enumerating your financial assets and liabilities. Ditto if you’ve picked a guardian for your young children-even if you’ve not yet formalized it-or compiled a list of all of your household’s liabilities and assets.ĥ) Name custodian for assets owned by minor children.Ħ) Draft powers of attorney for healthcare and financial matters.Ĩ) Create a trust (if needed).

If you’ve designated beneficiaries for your retirement accounts, you’ve started the estate-planning process. The good news is that you’ve probably already done a little bit of estate planning you just may not be aware of it. Is it any wonder that so many people put off estate planning, and less than half of the U.S. So, that’s a potentially costly exercise that involves contemplating your demise and may be mainly for rich people anyway.

Then there are the costs: Properly drafted estate plans usually involve attorneys, and they like to get paid for their services. (Do I even have an estate, you wonder?) And once you delve deeper and find out that estate planning revolves around organizing your affairs in case of your death or incapacity, the project sounds even less compelling than cleaning the gutters or shredding those giant piles of paperwork that have been accumulating in your office. “Estate” conjures up images of the uber-wealthy setting aside giant tracts of land for the next generation. “ Estate planning” is off-putting on so many levels.