Estate planning is one of the most difficult things I get my clients to do. I don’t blame them, most of us don’t want to think about when we are gone. If you think about it though, it might be one of the most important financial planning pieces in your life. Frankly, if COVID taught us anything, getting your affairs in order can be one of those things we ignore, until we can’t. Imagine family members trying to figure everything out when they are trying to mourn your loss.

Estate planning is the process of preparing for the management and disposal of your assets and responsibilities after your death or incapacitation. Here are some essential estate planning documents:

1. Last Will and Testament: A will is a legal document that outlines your wishes regarding the distribution of your assets after your death. It names an executor to manage your estate and guardians for any minor children.
2. Living Trust: A living trust is a legal document that outlines how your assets will be managed and distributed during your lifetime and after your death. It can help avoid probate and provide ongoing management for any assets held in the trust.
3. Power of Attorney: A power of attorney is a legal document that grants someone else the authority to make decisions and take actions on your behalf if you become incapacitated or unable to make decisions.
4. Advance Directive: An advance directive is a legal document that outlines your wishes for medical treatment if you are unable to make those decisions yourself. It may also name a healthcare proxy to make medical decisions on your behalf.
5. Beneficiary Designations: Beneficiary designations on accounts such as retirement plans and life insurance policies are important estate planning documents because they determine who will receive the assets in those accounts after your death.
6. Letter of Instruction: A letter of instruction is a non-binding document that provides information and instructions for your executor and loved ones regarding your personal wishes, funeral arrangements, and other matters.

If you have plans in place already, it’s a good idea to review at a life change or every couple of years. A good estate attorney will put together a plan that is flexible and easy to adjust for life changes, but things do change over time. If you need assistance, don’t hesitate to reach out.