Estate Planning Checklist: 5 Must-Have Items

You don’t have to hold multiple properties, own significant interest in a stock or business, or have more money than you know what to do with to think about estate planning.

In fact, estate planning is something that individuals of all incomes, tax liabilities, and ages should think about in order to better protect their families and their interests in the future.

Getting started with estate planning can be difficult, but if you start by thinking about the people and assets in your life that are important to you and you then shape a plan for how you want them to be taken care of, the experience can be more comforting.

So whether you are just getting started with the estate planning process or you want to see if your current plans are protecting your interests and loved ones, here is our list of five key things you need to have in your own estate planning checklist.

Estate Planning Overview

Before we get started, it is important to be on the same page when it comes to what an estate plan is and what it is not.

In short, estate planning helps to protect your family and your assets should you die or become incapacitated. It allows you to plan ahead for how you want your money to be used, distributed, or protected in different situations.

Although there are many factors and decisions that go into the creation of an estate plan, ultimately, you should have a document that:

• Lays out how you would like to support and care for your family and allocate your assets.
• Makes determinations, states your wishes, and presents a plan to help your loved ones determine what kind of medical care you could receive should you become incapacitated.
• Helps you and your family prepare for the potential tax and legal realities that come with the transfer of your assets and property.
  
  

The Must-Have Items on Your Estate Planning Checklist

So what are the key items that should be on every estate planning checklist? Though wording may vary and every family will have different variables to juggle, here are Harvest Wealth Group’s five necessities for any estate planning process.

1. Your estate planning goals have been identified and met.

The ultimate purpose behind creating an estate plan is to help those you love take care of you when you need it and, in turn, help you take care of them in a way that aligns with your wishes.

• Have you thought of all the loved ones you need to help take care of or wish to support?
• Have you accounted for all of the assets you want to protect or transfer responsibility for?
• Have you explicitly documented the types of care or decisions you want made in different medical or health situations?

2. All of your necessary legal documents are updated.

An estate plan is just one part of a larger set of documents that can shape the kind of care you receive, dictate your wishes for your property, and lay out how you want your loved ones to be supported.

As you are developing and reviewing your estate plan, take the time to also update your:

• Will
• Power of attorney
• Healthcare power of attorney
• Other guardianship documents, as needed

Once these documents are updated, make sure your family members and trusted partners are aware of your wishes and their roles in carrying them out.

3. All of your assets are included in your estate plan.

Even if most of your assets are listed and accounted for and have a plan associated with them, if another source of income or financial asset is found to have been left out, your family can be faced with a lot of difficult decisions, including how it should be dealt with in accordance with your other wishes.

Make the handling of your estate as simple as possible by making sure each facet of your estate is covered in your plan.

4. You have a plan to cover all of your debts.

The last thing you want to do is leave one of your loved ones unexpectedly having to deal with your liabilities.

Although the details can be different depending on whether the debt is personal or business-related, the good news is that planning ahead now and reviewing the details of each liability can help you reduce the burden of your debt on your loved ones—and even protect certain assets from creditors.

5. You have thought through the different financial and tax risks to your plan.

It can be difficult to think through all of the various financial and tax implications of your estate plan, but an experienced financial advisor can review your documentation and assist you in organizing your financial affairs to best fit your family’s goals and needs.

This is also a great way to get a second opinion on how comprehensive and detailed your plans are and if you may be missing a key component.

Estate Planning Assistance

We know that this process can be overwhelming—emotionally and mentally—but we hope our estate planning checklist helps you make sure those you love are provided for in a way that matches your wishes. With careful planning, you can document your key decisions, goals, and hopes for the future, and return your focus to the present and what matters most.

If you are looking for an extra hand or a second opinion, it is important to remember that you have a team of experienced professionals ready to help you and your family along each step of this journey.

Click here to schedule your own personalized consultation. While you are at it, we also welcome you to read our free resource, Creating a Personal Financial Plan to Help You Reach Your Money and Life Goals.