In your will, you can name guardians for minor children, establish trusts for their care and education, and provide for the distribution of specific assets to beneficiaries. Step 2: Draft a WillĪ will is a fundamental component of an estate plan.Ī will is a legally binding document specifying how you want your assets distributed and who will carry out your wishes. List your real estate properties, investments, retirement accounts, bank accounts, life insurance policies, business interests, and valuable personal belongings.ĭetermine their approximate values and identify any outstanding debts, such as mortgages, credit card balances, or loans.Ī clear understanding of your financial standing is essential for making informed decisions about how you want your assets distributed among your heirs. That is – what do you own, what do you owe? Step 1: Take Stock of Your Assets and Liabilitiesīefore making a plan, work out what you have and create an inventory of all your assets and liabilities. Establish powers of attorney and other core documents.Choose your beneficiaries and fiduciaries.Take stock of your assets and liabilities.It gives a medical power of attorney direction in those extremely difficult times. This details an individual’s wishes around life-sustaining measures. Advanced Directive: a document expressing a person’s wishes about critical care when they are unable to decide for him or herself.Power of Attorney: a legal document giving a person legal authority to make decisions about the principal’s property, finances, or medical care while the principal is alive.Differentiating factors can include state of residence, relevant probate rules, costs, and personal preference. This works with a will to streamline asset ownership and titling to avoid probate at death. Living Trust or Revocable Living Trust: a trust established during an individual’s lifetime allows for privacy and probate avoidance upon death.

Will: a legally enforceable document describing how a person wishes their property to be distributed after death.It incorporates tax planning, legacy planning, and charitable giving, and reflects your life’s important relationships and causes.Īt it’s core, it makes a clear plan for the disposition of assets at your passing.Ī basic estate plan includes the following: Think of it as a personal business plan consisting of documents that take effect during your life (e.g., powers of attorney, health care directives, a revocable trust) and at your death (e.g., a last will and testament). What is an estate plan?Īn estate plan is a collection of documents that manage your personal and financial affairs in case of incapacitation or death. While contemplating mortality can be uncomfortable, creating an estate plan is an act of love and responsibility towards family members and beneficiaries.Ī comprehensive estate plan checklist provides peace of mind-your wishes will be fulfilled, and your loved ones will be cared for. Estate planning is a crucial process that allows individuals to organize their finances and assets, ensuring a smooth transfer of wealth to their loved ones after their passing.

Estate planning information checklist