Crafting a thoughtful estate plan involves more than simply deciding how your assets will be distributed. A well-considered plan can help ensure your wishes are honored, reduce potential tax burdens, and even allow you to support the charitable causes you care about. At Legacy Private Trust Company, we understand that estate planning is a deeply personal process, and we are here to help guide you through it with expertise and care.
Here are several key actions to consider as you develop your estate plan:
1. Regularly Review and Update Beneficiary Designations
Your beneficiary designations on financial accounts typically take precedence over instructions in a will. This means that if they are outdated, your assets may be distributed in a way that does not align with your current wishes. We recommend reviewing these designations annually or after major life events, such as marriage, divorce, or the birth of a child.
Key accounts to review include:
- Retirement plans and pensions
- Life insurance policies
- Bank accounts
- Business ownership agreements
By regularly updating your beneficiaries, you can help ensure your assets go to the right people or organizations.
2. Ensure Real Estate is Properly Titled
The titling of your real estate plays a crucial role in determining how property will be passed on after your death. Real estate laws vary by state, and working with an estate attorney can help ensure that your property titles are in order and reflect your current wishes.
3. Prepare for Unexpected Life Scenarios
Life can be unpredictable, and it’s important to plan for the possibility that you may become unable to make decisions for yourself. Certain legal documents can ensure your financial and healthcare preferences are followed:
- Durable Power of Attorney (DPOA): This allows a trusted individual to manage your financial affairs if you are unable to do so.
- Health Care Proxy: Enables a representative to make healthcare decisions on your behalf.
- Advanced Directive: Also known as a living will, this document outlines your medical treatment preferences in the event you become incapacitated.
- HIPAA Release: Allows your chosen representative to access your medical records, ensuring they can make informed healthcare decisions on your behalf.
4. Draft a Will
A will is essential for outlining how your assets will be distributed, naming an executor, and appointing guardians for minor children. It is vital that your will is easily accessible to your estate planning team and loved ones. Regular reviews of your will, especially after significant life events, will help ensure it continues to reflect your wishes.
5. Consider Establishing a Trust
Trusts can offer enhanced control over how your assets are distributed and may also help reduce tax obligations for your beneficiaries. In addition, trusts can provide privacy by avoiding the probate process. Whether or not a trust is appropriate for you depends on factors such as your family situation and the size of your estate.
6. Appoint Executors and Trustees Thoughtfully
Your executor and trustee play critical roles in managing and distributing your assets after you’re gone. Choosing someone who is both capable and trustworthy is crucial, as these responsibilities can be complex and time-consuming. While many individuals choose a close friend or family member, others opt for a professional trustee or executor, especially if their estate is complex.
7. Align Your Estate Plan with Your Values
Your estate plan offers an opportunity to reflect your values and legacy. Whether you want to support a favorite charity or ensure financial security for your family, your plan should encompass the people and causes that matter most to you.
8. Communicate Your Wishes Clearly
Open communication with your loved ones about your estate plan can help prevent misunderstandings and conflicts down the road. By discussing your intentions in advance, you can bring clarity to a process that might otherwise be challenging during an emotionally difficult time.
Start Building Your Legacy Today
At Legacy Private Trust Company, we believe your estate plan is an essential part of preserving your legacy for future generations. Our experienced team is dedicated to helping you navigate the estate planning process with personalized strategies that align with your goals and values. We are here to assist you in creating a plan that reflects your unique legacy—now and in the future.
If you are a Legacy client and have questions, please do not hesitate to contact your Legacy advisor. If you are not a Legacy client and are interested in learning more about our approach to personalized wealth management, please contact us at 920.967.5020 or connect@lptrust.com.
This newsletter is provided for informational purposes only.
It is not intended as legal, accounting, or financial planning advice.
