5 Estate Planning Considerations

Creating a comprehensive estate plan is a key step in ensuring your wishes are honored and your loved ones are cared for after you’re gone. Picture two families trying to find their way forward after losing a loved one.

For the first family, Sarah’s father had a clear and up-to-date estate plan. His will outlined who would inherit what, a trust protected the family home, and a living will ensure his medical wishes were honored. When he passed, the family knew exactly what to do. They avoided probate delays, minimized taxes, and had the peace of mind that they were carrying out his wishes.

Now consider the second family. Michael passed without a will, leaving his assets to be divided according to state laws. There were costly probate proceedings, arguments over who should inherit sentimental items, and confusion about his end-of-life preferences. Without clear instructions, tensions rose, and the process stretched on for months.

Estate planning can make all the difference between peace of mind and turmoil during an already difficult time. While it might feel daunting, breaking it into manageable steps can simplify the process. Here are five important estate planning considerations to guide you.

1. Clarify Your Priorities

Think about your primary goals. For some, this may mean securing a comfortable future for a spouse, while for others, it’s about providing for children or ensuring philanthropic intentions are met. Identifying your priorities will help you make decisions aligned with your vision and values.

2. Create or Update Your Will

Your will is a cornerstone of your estate plan. It specifies how your assets will be distributed, saving your heirs from the complexities of probate. Over time, life events like marriages, divorces, or the birth of grandchildren may require you to update your will to reflect your current intentions.

3. Plan for Unexpected Health Challenges

Incorporate a living will and health care directives into your estate plan. These documents ensure that your medical wishes are respected and designate a trusted individual to make decisions on your behalf if you’re unable to.

4. Designate Responsible Individuals

Selecting the right people to manage your estate is crucial. This includes naming an executor for your will, trustees for any trusts, and guardians for minor children. Be thoughtful about these designations, and consider appointing backups where necessary.

5. Minimize Taxes and Optimize Transfers

Strategies such as setting up trusts or joint ownership arrangements can help reduce the tax burden on your estate and facilitate smoother asset transfers. Discussing options with a financial or legal professional can ensure your plan is as efficient as possible.

Estate planning is a dynamic process. Regularly review your plan to ensure it reflects your wishes and remains effective as laws and circumstances change. Start the conversation with a trusted advisor today to gain peace of mind for the future.

This information was provided in part by Oechsli. Opinions expressed in the attached article are those of the author and are not necessarily those Raymond James.