7 Steps to Actually Completing Your Estate Plan

Your estate plan will need periodic updates, especially as life circumstances shift. This makes it important to select an attorney who you'll want to work with more than one time over multiple years.

Begin by asking your financial advisor or accountant for attorney recommendations. If you have specific concerns — like owning a business, a child with special needs, or assets in multiple states — be sure to seek an attorney with expertise and experience in those areas.

Here are some questions you can ask estate attorneys as you meet and talk with them to find out if they're a good fit:

• How long have you practiced law, specifically estate planning?
• Do you have experience with situations like mine?
• How many estates have you settled, and what’s the typical amount of assets of your clients?
• How much will my plan cost and how do you charge for your services?
  
• Do you have experience with tax planning, especially for larger estates?
• Will you communicate with my financial advisor to help ensure all the needs are covered?

In addition to qualifications, weigh the personal rapport. Your attorney will need to know intimate details about your finances and family life, so make sure you feel comfortable with this individual.

Before meeting with your attorney, compile a comprehensive list of your assets and liabilities. This includes your investments, life insurance policies, personal property (home, cars, valuables, furniture, household items, etc.) that you want to make sure are covered in your plan so they go to the right heir, and any business interests. Be sure to also include outstanding debts, such as a mortgage, student loans, or other loans. While your attorney will likely provide a worksheet to guide this process, gathering this information in advance will save time and ensure accuracy. A master directory of your assets can also serve as a valuable resource for your heirs in the future.

A crucial component of estate planning is designating the right people to carry out your wishes. You’ll need to assign trusted individuals to the following roles:

• Executor: This person will gather and distribute your assets according to your will. Choose someone who is detail-oriented, good with numbers, and has the availability to manage your estate. While many people choose family members, you can also hire a professional, such as a bank trust officer.
• Durable (Financial) Power of Attorney: This individual is authorized to make financial decisions on your behalf if you become incapacitated. Choose someone who understands your financial preferences and can make decisions in your best interest.
• Healthcare Power of Attorney: This person will make healthcare decisions for you if you are unable to do so. It’s best to choose someone who lives nearby and understands your wishes concerning medical care.
• Guardian: If you have minor children, select a guardian who will raise them if both you and your spouse were to pass away. The guardian should share your values and be financially capable of caring for your children. You may also want to appoint a separate guardian for your children’s financial assets.

When you meet with your estate-planning attorney, they’ll guide you on which documents are necessary based on your personal situation. However, these are the essential documents that most plans should include:

• Last Will and Testament: Specifies how your assets should be distributed upon your death.
• Living Will: Details your preferences for medical treatment if you become terminally ill or incapacitated.
• Medical Power of Attorney: Grants an individual the authority to make healthcare decisions on your behalf.
• Durable (Financial) Power of Attorney: Enables someone to make financial decisions for you if you’re incapacitated.

Once your estate-planning documents are finalized, be sure to destroy any outdated versions to avoid confusion. Keep the current documents in a secure place, such as a home safe or a locked file cabinet. While a safe deposit box is another option, be aware that your family may have difficulty accessing these documents in the event of your death or if you become incapacitated.

Make sure your executor and other key individuals know the location of your estate-planning documents. Providing them with copies ensures they can act quickly when needed. Creating a master directory of your assets and liabilities can provide your heirs with a useful guide, but be sure it's stored securely.

While the documents are a legal way to formalize your wishes, they don't address all parts of estate planning. It's important to take time to consider other important factors that aren’t directly addressed in your estate plan documents. If you need long-term care, would you prefer to receive it at home if financially feasible? What values and life lessons do you want to pass on to your children if a guardian must step in? These are important questions to reflect on, even if they aren’t spelled out in legal documents. It's important to talk about these topics with those who may be involved or affected when necessary.

Finally, remember that your estate plan is a living document. You’ll need to revisit and revise it as life changes. Contact your estate attorney if there are changes in your life that affect your estate plan. A few of these changes include:

• Changes in marital or family status, such as a marriage, divorce, birth, adoption.
• Significant changes in your financial situation, such as major purchases, sales, or changes in assets.
• The death or illness of a beneficiary, executor, or guardian.

Remember, estate planning is not a one-time task, but an ongoing process. By following these steps, you can ensure that your wishes are carried out, your family is protected, and your legacy is preserved in the way you desire.