Here's Your Estate Planning Checklist

Without a clear plan, your estate could be subject to delays, disputes, and unnecessary taxes. A checklist keeps you on track, ensuring no critical component is overlooked. It also makes it easier to update your plan as laws or personal circumstances change.

Core Components of an Estate Plan

An estate plan typically includes several essential legal documents and financial strategies. While every situation is unique, the following elements form the foundation for most individuals:

• Will: Directs how your assets are distributed and names guardians for minor children.
• Trusts: Can help avoid probate, manage tax liability, and control how and when assets are distributed.
• Power of Attorney: Authorizes a trusted individual to make financial decisions on your behalf if you become incapacitated
• Advance Healthcare Directive: Outlines your medical wishes and names someone to make healthcare decisions if you cannot.

These components work best when they are integrated, regularly reviewed and stored in a safe but accessible location.

Addressing Beneficiary Designations

Beneficiary designations on retirement accounts, life insurance policies and other assets often override instructions in a will. Failing to update them after significant life changes, such as marriage, divorce, or the birth of a child, can lead to unintended consequences.

Minimizing Taxes and Protecting Assets

Strategies such as gifting, making charitable contributions and utilizing certain trusts can help reduce estate taxes. Tools such as life insurance trusts and asset protection trusts can also safeguard wealth from creditors or lawsuits. An estate planning law firm can help tailor these strategies to your specific needs and state laws.

Keeping Your Plan Current

Life changes, new relationships, property purchases and changes in business interests should prompt a review of your estate plan. A good rule of thumb is to revisit it every three to five years, or sooner if there’s a significant change in your family or finances.

Key Takeaways

• Estate planning is comprehensive: It includes wills, trusts, powers of attorney and healthcare directives.
• Beneficiary designations take priority: Keep them updated to align with your overall plan.
• Tax strategies can preserve wealth: Use gifting, trusts and charitable contributions to minimize liabilities.
• Regular updates are essential: Review your plan every three to five years or after significant life events.

A comprehensive estate plan ensures that your wishes are honored, your loved ones are protected, and your legacy is preserved. From wills and trusts to powers of attorney and healthcare directives, careful planning allows you to manage your assets and prepare for life’s uncertainties. At The Werner Law Firm, our knowledgeable estate planning attorneys help clients craft estate plans that reflect their values, minimize complications, and provide peace of mind for the future.

If you have any questions, schedule a free appointment with us through our online appointment page.

You can also read reviews from some of the hundreds of clients we have helped over the years.

Reference: Investopedia (Jan. 16, 2025) “Estate Planning: 16 Things to Do Before You Die”