Your estate plan package should include much more than a generic will, but what else is necessary? Below is an estate planning checklist, which can be helpful, but is not a substitute for legal advice specific to your situation.
- Before you do anything, you need to think about what your goals are for your legacy. These goals will shape what is needed for your estate plan.
- The most common aspect of an estate plan is a will. Put plainly, the will outlines what you want to happen to your “things” when you pass away.
- Going a step further, you can also create a trust. A properly-drafted trust can help your heirs and beneficiaries to avoid the lengthy process of probate court.
- Your estate plan should also include a power of attorney. The power of attorney allows someone else to act in your place if you become incapacitated and/or otherwise unable to handle your affairs.
- You should also consider a health care surrogate. This is an individual who can step in and make medical decisions on your behalf if you are incapacitated or otherwise unable to speak for yourself.
- Name a guardian for any minor children. This is typically done in your will, and serves to guide the probate court as to your wishes and who you want to raise your children if you pass away.
- In addition to the guardian for the children, you may want to name a guardian of the property your minor children may inherit from your estate.
- Make burial or cremation plans. As dark as it may be, if you have it planned out ahead of time, your friends and family will be grateful for the roadmap you left them.
- If you own a business, you need to create a succession plan. The succession plan outlines what happens to your business when you pass away.
- In addition to the estate plan documents, you should also consider a life insurance policy. Life insurance can financially help spouses, children, family, and friends when you pass away.
- Keep your documents together. Once your estate plan is drafted, keep all documents (plus any life insurance policies) together in a safe place, and let a trusted friend or family member know where they are. This way, when you pass away, that individual will be able to easily collect all of your documents and show them to the court or others who may need them, such as the bank. Keeping bank statements, investment account statements, real estate deeds, and other important documents with this packet can be helpful as well.
The best thing you can do is contact a local attorney who will meet with you and understand your goals. You then work together as a team to create a set of documents that achieves those goals.