Keep It Simple

My clients frequently express concern that the estate planning process will be long and arduous. However, the truth is that your estate plan does not have to be complicated. At its foundation, your estate plan can be viewed as a tool to put your wishes in writing in order to save your loved ones time, money, and frustration down the road. Below is a simplified outline of decisions to consider to jumpstart the estate planning process.

Establish beneficiaries. Your will or trust should lay out your wishes for the distribution of your assets upon your death. You can also use beneficiary or transfer on death (TOD) designations on retirement accounts, investment accounts, and other financial assets as well as vehicles and real estate to streamline distribution upon your death. Double check beneficiary designations that may have been set up in the past.

Put someone in charge. Select one or more individuals (or even a bank) who you trust to fulfill the roles of power of attorney, executor, and trustee (if you are setting up a trust). Your POA can be utilized to manage your personal business in the event of your incapacity, while your executor will manage the distribution of your assets upon your death according to your will. If you have a trust, a successor trustee will manage trust assets and distribution upon your incapacity or death.

Name a health care representative. Choose someone you trust to manage your medical decisions in the event that you become incapable of doing so. Consider setting up a living will to express your wishes for end of life medical care.

With estate planning, the hardest part is getting started. Taking the first few steps above will get the wheels turning.