Estate planning can feel overwhelming for those who have never put together a plan or who haven’t reviewed theirs every three to five years as recommended. The good news is that with the help of a specialized lawyer, this process can go much more smoothly and efficiently than many anticipate.

In that vein, we thought we would share a general checklist that we send to our clients who are preparing to create or update an estate plan.

Essential Components of an Estate Plan

Beneficiary Designations

Make sure you name a beneficiary for all non-probate assets, including 401(k)s, IRAs, life insurance policies, pensions, and bank accounts. For those who already have an estate plan, it’s important to ensure that the person currently named is still the person you want to be the beneficiary.

Financial Power of Attorney

Choose someone you trust who can make financial decisions for you in the event you are unable to do so.

Advanced Healthcare Directive

Ensure your medical preferences are followed using a living will. In addition, you’ll want to name a trustworthy friend or family member (often a spouse, parent, or child) as your medical power of attorney. This person will make medical decisions for you in the event you are unable to do so.

Name a Digital Executor

In this day and age, it’s wise to name a digital executor. This person can follow instructions you leave regarding all of your digital assets, such as bank accounts, social media, digital files, photos, and online storage.

Proof of Identity

Make sure all of these documents, including your marriage license/divorce certificates, Social Security card, and prenuptial agreements, are in one place and easy to locate.

Property Deeds and Titles

Confirm that all deeds and titles are up to date and in an easy-to-locate place–and if you’ve established a trust, make sure to retitle your property to list the trust as the owner.

Funeral Instructions

Make a list of your preferences regarding your funeral and place it with your will and other important documents. List your preferences, such as whether or not you wish to be cremated, a passage you want someone to read, or a list of preferred charities for donations.

Insurance Information

Gather all of your policies and make sure your executor knows where they are and what to do with the information.

While this is not an exhaustive checklist, it’s a good jumping-off point to work from in consultation with an estate planning professional. Estate planning is not something people love to talk about, but it is important that it is done–and done right.

Common Estate Planning Mistakes to Avoid

Failing to Include Power of Attorney

A power of attorney names someone you trust who can act in your stead should you become medically incapable of making important financial, legal, and/or medical decisions.

Misunderstanding Your Estate Plan

It’s critical you take the time to read through and understand the plan, what it entails, and what will happen when it is put in motion.

Forgetting to Update It as Circumstances Change

Our lives evolve constantly, and it’s important that your estate plan reflects changes. We have dealt with estates where assets and money were left to ex-spouses or deceased family members. Additionally, we have seen feelings hurt by a family member who was left out of the document because they married into – or were adopted into – the family after the plan was created. It is vitally important that you revise your plan at least every five years to make sure your wishes are reflected and followed.

Failing to Fund Revocable Trusts

Many estate plans include a revocable trust. Assets owned by the trust are protected from being tied up in probate court. Your attorney will draw up the appropriate paperwork, but you will need to transfer the relevant assets to the trust. For example, your house will need to be owned by the trust and not by you individually. Many clients fail to realize this and skip this important step, negating the work they did in creating the trust in the first place.

Conclusion

Estate planning is a crucial step in ensuring that your assets are managed and distributed according to your wishes. At Jurist Law, we are here to guide you through the process, making it as straightforward and stress-free as possible.

To learn more about estate planning and to get your questions answered, attend our upcoming event. Our experienced lawyers will provide valuable insights and help you take the first step towards securing your legacy.