Estate planning is a term used to describe various aspects of planning what happens to assets and personal matters at the end of life. Your plan should consist of thinking through various aspects of your life goals and putting these decisions in a written legal document to ensure that your wishes will be carried out.

Developing a written plan for handling these matters can be a gift to your family by helping them understand your wishes. It can also help avert family conflict.

Estate Planning is for everyone regardless of age or finances. Each person has an opinion regarding how they want their affairs handled after they are gone. The time to think through all these questions is now while you are able.  

If you fail to develop a plan in a legal document, the courts will decide everything for you as provided in state law. The court will not consider any unique family situations or needs. It is also more cumbersome and expensive if the courts make all the decisions for you.

The basics of any plan involve standard questions: Who, What, When, Why and How.

Who are the people and organizations you love and want to receive your assets? This likely includes your spouse, children, perhaps other family members or close friends and your church.

What resources do you have? This includes everything you own and income sources that may continue after your death. Bank accounts, investments, retirement accounts, your home and contents, vehicles, life insurance, etc. It is very helpful to prepare a list before meeting with your attorney. Download an Estate Planning Worksheet form from this website under “downloads available” or email endowment@hnaz.org.

When do you want your assets to transfer? This may be immediately upon your passing, or you may want to delay distribution in the case of minor children or others not ready or able to manage an inheritance.

Why are you developing a plan? What do you wish to accomplish with your plan? You may consider many things including financial security for yourself, your spouse and children. Also consider the legacy for which you want to be remembered.

How can you accomplish these goals? This requires guidance from expert advisors.

It depends on your goals. The most common documents are:

• A legal document (Will or Trust) that declares your intent for the transfer of property at the end of your life and names the person(s) responsible to administer your estate.
• A Durable General Power of Attorney allowing a named person(s) to act on your behalf in the event of an injury, illness or mental decline.

A revocable living trust is one that can be changed at any time. It typically names you as initial trustee, then successor trustees such as spouse, others, etc. It usually contains language similar to a Will and is often used to avoid the complexity and cost of estate administration in probate court.

There are costs with trust administration, but usually much less than  probate costs with a Will. Also, trust administration is not an open public record; Wills probated in court are public.

Creating an estate plan does not have to be expensive, but will require the assistance of an attorney and may require advice from your other professional advisors as well. The complexity of  your assets, life situation and goals will influence the complexity of your plan.

You can certainly help before meeting with your attorney and/or other advisors. Be prepared to answer the five questions: Who, What, When, Why and How.

An Estate Planning Worksheet to aid in gathering information is available. Download a copy from this website under “Downloads available” or email endowment@hnaz.org.