Helping to Protect Your Family’s Legacy – Finger Financial Five #192

Estate planning is an essential component of aligning your assets and healthcare decisions with your wishes before and after your passing. While Estate Documents should only be written up by an Attorney, the planning process can begin before those documents are complete.

The Potential Benefits of a Well-Structured Estate Plan

• Align your assets with your desires
• Reduce potential conflicts among heirs
• Provide clear healthcare instructions
• Simplify the transition for your loved ones
• Help to protect your family’s legacy

Components of Your Estate Plan

1. Inventory Your Assets – Create a detailed list of your assets—homes, vehicles, investments, personal items, and online accounts. This is the foundation for distributing your estate according to your wishes.
2. Designate Beneficiaries – Assign both primary and contingent beneficiaries for your accounts and insurance policies. We recommend that you communicate your plans to the person who you intend to appoint as the Executor of your Estate. They will need to know who to call, how to access your house, where to find your inventory of your accounts, passwords, and legal documents.
3. Consider Gifting – Strategically gifting the right assets at the right times could allow you to provide for loved ones and potentially reduce taxes. A financial advisor and a CPA can help to determine the appropriate approach here.
4. Draft a Will – A will outlines how your property should be distributed after your death. It also allows you to appoint an executor to manage your estate and carry out your wishes.
5. Establish Trusts – Trusts can provide flexibility and protection but might not be for everyone. Trusts can be particularly useful for family members with special needs.
6. Assign Power of Attorney (POA) – A power of attorney gives someone you trust the legal authority to make decisions on your behalf if you’re unable to. There are several types of POA which can range from helping make financial and/or healthcare decisions for you if you can’t make those decisions for yourself at some point.
7. Create an Advance Directive – An advance directive specifies your healthcare wishes if you’re unable to communicate them. This may include decisions about life support, resuscitation, or organ donation.
8. Guardianship for Minor Children – Appointing a guardian helps to solidify a child’s care needs if something happens to you. Consider naming a backup guardian as well, and make these designations legally binding can help avoid family disputes.
9. Regularly Review and Update – Certain major life events such as marriage, divorce, moving, or receiving an inheritance warrant a review of your plan. Make it a habit to revisit your estate plan every 5 years or after significant changes to your life or assets.

Steps to Implement Your Estate Plan

1. Engage Professionals
   You will want to consult with an attorney to identify and write up all potential documents to draft to meet your wishes. Prior to that meeting, write up a list of questions and your most important considerations on this matter so they can help address each unique need.
2. Communicate with Your Family
   Let your loved ones and your executor know about your estate plan and provide them with contact details for the professionals involved. Clear communication helps prevent misunderstandings later.
3. Secure Document Storage
   Keep your estate documents in a safe and accessible place. Make sure that copies are accessible by your trusted family members and executor. If they can’t find a copy, they should at least know who your estate attorney is, as they will almost always keep a copy in their office.

Estate planning requires some careful thought and collaboration, but once complete, it can reduce the burden on your loved ones, potentially avoid unnecessary legal battles, help to protect your legacy, and hopefully bring you confidence along the way.

On The Lighter Side

Riverbend has now been in business for over 5 years. The journey so far has been extremely fulfilling, and we’re just getting started! We are extremely grateful to all of you who have been a part of our story, and we are committed to continued growth, both professionally and personally.

Hope all is well with you and your family,  
Jeremy