You’ve probably heard the expression ‘Getting your affairs in order’. This expression refers to the completion of your estate plan. In other words: ‘Make sure your end-of-life wishes are documented properly and are legally binding’.
The end goal of estate planning for many people is to remain in control of their financial legacy after their life and their personal care towards the end of life. (Even if/when they are no longer able to communicate their wishes.) A well-structured estate plan accomplishes those goals while simultaneously avoiding ambiguity.
There are many steps to take that all the way to completion though. Sometimes, it’s best to start with informing yourself, getting organized, and creating a gameplan. That’s where our checklist comes in.
The Ultimate Estate Planning Checklist
1. Inventory Your Assets
We recommend starting off with a clear and easy first step of listing out all your assets. This includes your home, vehicles, investments, business interests, insurance policies, personal items, account usernames/IDs, and Passwords. This step helps you understand the full scope of your estate, keeps things organized, and lays the foundation for the rest of your planning.
Write down details of each: Date that you are documenting this info, descriptions of each item, locations, years acquired, current estimated value, legal descriptions, or other identifying features depending on the asset/item/property.
(It’s also beneficial to list out debts, incomes, and expenses, as each of those may have to be managed at the time of your passing.)
2. Designate Your Beneficiaries
Beneficiaries are the ones who will inherit your assets. It’s crucial to keep these designations up to date. A ‘primary’ beneficiary is the first tier of beneficiary who will receive assets if you pass before them. If they pass before you, or you both pass at the same time as each other, it is important to add ‘contingent’ beneficiaries who will then receive the assets.
If one of your beneficiaries has beneficiaries of their own, (Your grandkids for instance) and your beneficiary (Your child) were to pre-decease you or pass at the same time as you, there is a contingency that can help you prepare for that unfortunate outcome. ‘Per Stirpes’ vs. ‘Per Capita’:
- ‘Per Stirpes’ dictates that your beneficiary’s portion gets spread evenly to their beneficiaries upon your passing.
- ‘Per Capita’ divides the inheritance equally among the remaining listed primary beneficiaries.
(The alternative to these options is to list your grandkids as primary beneficiaries along with your kids.)
More often than not, when a death occurs, you can reassess your beneficiary set up at that time. However, an unexpected death or series of deaths should be planned for just in case. A good rule of thumb is to review and update your beneficiaries after all major life events, like marriage, divorce, death in the family, or the birth of a child.
3. Plan for Digital Assets
In addition to your physical and financial assets, your digital presence needs to be accounted for. Many people store key financial and personal records online, making digital estate planning just as important as traditional estate planning. This covers everything from email, to insurance, to social media accounts, to online banking, to cryptocurrencies.
List all your digital ‘assets’ and provide instructions for how they should be handled. In a secure fashion, list out all usernames, passwords, and accounts that you hold, and make sure that this information is accessible by the person you trust the most. Ensure that your executor or trustee has access to all the information they need, or instructions for how to access it.
*** Important Note *** Riverbend Wealth Management is not a law firm and it’s employees are not attorneys. Some of the next steps in this list involve legal documentation, which often requires the guidance of an attorney. While financial professionals can offer some insight, legal expertise is crucial for execution. Some of the following documents may be appropriate for you, and others may not be. ***
4. Create a Plan for Gifting
A well thought-out estate plan can include gifting plans and a gifting strategy while you are still alive. We call this, ‘giving with a warm hand rather than a cold one’. It can be very rewarding and fulfilling to give a hand up to loved ones and watch them benefit from it.
On top of that, there are gifting strategies to charities that can result in more funds to the charity and less funds to Uncle Sam. Two of these options are QCDs and Donor Advised Funds.
It also can be tax-beneficial to strategically plan which assets should be gifted during life rather than inherited and vice versa. If you plan to leave part of your estate to charity, you can explore options such as charitable trusts, donor-advised funds, or direct bequests.
5. Drafting a Will
Wills come in different shapes and sizes. Generally speaking, a will is usually a written legal document drawn up by an attorney that outlines how your property and assets should be distributed.
More specifically, wills have the potential to indicate your wishes on healthcare decisions. They also can create trusts that are set to be established after you pass. And there are even cases of ‘verbal wills’ that are established in the moments before death. (Not usually recommended, but sometimes necessary.)
No matter the size of your estate, a will is considered an essential step. Make sure it includes an ‘executor’ to carry out your wishes and specifics for how your assets are to be distributed amongst your heirs and causes you care about.
It is also beneficial to clearly document your wishes for your funeral, burial, or cremation. Sometimes this consideration may be accomplished in either a will or a ‘final disposition document’.
6. Establishing Trusts
Trusts can offer more protection and flexibility than a will alone. They also may help you avoid probate and may reduce estate taxes in some instances. Different types of trusts, like revocable and irrevocable, serve various purposes.
For example, a revocable trust can be changed during your lifetime, while an irrevocable trust cannot. Trusts are especially useful in the following instances:
- You have minor children
- You have family members with spending problems
- You have family members with mental health issues
- You have family members with disabilities
- You have family members with addiction struggles
- You have significant assets that you want to protect and allocate carefully before or after you pass.
7. Assigning Power of Attorney
Power of attorney (POA) grants an ‘agent’ of your choosing the legal power to make decisions on your behalf if you’re unable to do so. This can be temporary or permanent.
The different types of POA are:
- General – You authorize your agent to act for you in all situations allowed by local law.
- Durable – Gives your current agent continued authority to act on your behalf if you become incapacitated.
- Nondurable – Your agent’s power to act ends if you become incapacitated.
- Springing – Only gives your agent the power to act when a specified condition is met.
- Financial – A limited POA that grants your agent decision-making power on subject matters of your choosing such as paying your bills, bank access, or filing your taxes.
- Medical – Allows your agent to make healthcare decisions on your behalf.
It should go without saying that these are incredibly sensitive matters, and you should only choose someone who you trust implicitly if you are going to appoint them as a POA.
8. Advance Directives
An advance directive for healthcare is a legal document that states your desires for healthcare treatment if you are no longer able to communicate those decisions yourself in the future.
The similarity between an Advance Directive and a POA is that you still appoint an individual in both cases to carry out your wishes. The difference is that a POA puts more power in the hands of another individual, while the Advance Directive makes a legal proclamation of what your decision is if a specific situation arises. Such as:
- Do you want to continue living with a feeding tube if you are in a coma and are going to need it indefinitely?
- If you require resuscitation in order to survive, do you want the medical professionals to attempt to save you, or let you pass?
It is not fun to think about these stressful outcomes, but having legal orders in place prevents confusion and conflict during a very difficult time for loved ones. A decision made by you and documented legally can alleviate the decision from loved ones, especially if there is disagreement on what should be done.
9. Guardianship Designations for Minor Children
If you have minor children, appointing a guardian is crucial. If something happens to you, you’ll want to know that someone you trust is going to care for them.
Choose a guardian who shares your values and can handle the responsibility. You can also name a backup guardian in case your first choice is unable to serve. Make sure these designations are legally documented to avoid disputes.
Other loved ones that might require some guardianship planning are your furry friends! Many people with pets treat them as members of the family, so why treat them any differently from a legal standpoint? You can assign a caregiver and set aside funds for their ongoing care.
10. Create a Contingency Plan
A contingency plan is informal but can be beneficial in case something happens to you. This plan should include:
- A list of key contacts (attorney, financial advisor, executor, trustees)
- Instructions for handling immediate financial matters (paying bills, accessing emergency funds)
- Emergency access to critical documents (e.g., insurance policies, legal documents)
Consider providing a copy of this plan to your executor or trusted family member.
11. Write a Letter of Instruction
A letter of instruction is an informal but important document that provides guidance beyond legal paperwork. Unlike a will, it is not legally binding but serves as a roadmap for your loved ones. It may include:
- Detailed funeral or memorial service preferences
- Explanations of financial decisions or inheritance choices
- Practical instructions (e.g., how to manage your home or business)
In addition to the practical steps that can be provided in this letter, this also may be a good time to write out personal messages to family members. This is a beautiful way to give loved ones a final parting gift, one that they will forever cherish.
12. Regular Review and Updates
Your estate plan should evolve with your life. Major events like moving to a new state, receiving an inheritance, marriage, divorce, a death in the family, or the birth of a new family member are all good reasons for a review. The current suggested timeframe to review your estate planning documents is about once every 5 years, or when a major life event occurs.
Steps to Implement Your Estate Planning Checklist
You’ve taken the first step by informing yourself of the essentials of estate planning. Now, it’s time to put those insights into action. Implementing your estate plan is a critical step in securing your legacy, and you don’t have to navigate it alone.
After completing steps 1-3 above, here’s a streamlined path forward:
- Engage Professionals: Collaborate with an Estate Attorney, a CPA, and a Financial Advisor. These experts can guide you through the legal and financial intricacies, so you don’t have to deal with them on your own. Ideally, these professionals should communicate with each other, minimizing your burden and maximizing the coherence of your plan.
- Communicate Your Plan: Share your wishes with your most trusted family member or members and your chosen executor and provide them with the contact information for the professionals you’re working with. Include instructions for the care of pets, management of your home, location of personal items, and access to digital accounts. Clear communication now can help to prevent confusion later.
- Secure Document Storage: Store your estate planning documents in a secure but accessible location. Create multiple copies—one for your home, one in a safety deposit box accessible by your executor, one with your attorney, and another with your financial advisor. This extra level of redundancy protects your documents, your wishes, and your loved ones in case they remember some details but not others.
After you reach age 70, it’s wise to periodically review your estate plan with your most trusted loved one. Although this might seem early, being prepared well in advance is better than waiting too long. Over time, memory can fade, and having these conversations early on can reduce stress for both you and your loved ones.
Make sure it’s clear where everything can be found, leaving no room for uncertainty.
Embrace the Future with a Comprehensive Estate Plan
Estate planning can seem daunting, with its complexities, nuances, jargon, and high stakes. At its core though, it’s about your wishes—and taking the necessary steps to fulfill them. It’s about more than just protecting your assets; it’s about creating a peaceful transition to the next generation, free from conflicts and confusion.
Riverbend Wealth Management is not a legal firm, and our employees are not attorneys. This article is not legal advice. We cannot guarantee the accuracy of the info within this article. We recommend consulting with an estate attorney.
Riverbend Wealth Management specializes in Holistic Wealth Management. One major component of holistic wealth management is estate planning. (Not estate document creation). From an estate planning standpoint, we help you review your current accounts, confirm beneficiary designations, identify potential gaps in your long-term plans, help facilitate a charitable giving strategy, and connect you with reputable attorneys to solidify your estate.
Contact us for a free 15-minute financial assessment, and let’s build a plan for your future and your family together.
If you’re ready to learn more, take a look at some of our similar blogs on this topic:
- We’ve built A More In-Depth Guide for a deeper dive into the ‘how and why’ of the various unique estate planning considerations.
- For guidance on reviewing your existing estate plan, check out this Comprehensive Guide.
- Or consider resources like Trust&Will And/Or LegalZoom .
