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The saying goes that a cobbler’s children have no shoes. But my own experience creating an estate planning product after the death of my father over a decade ago has made me practice what I preach.
Knowing the importance of formalizing my wishes and information, I recently updated my own estate plan. Here’s why you should update yours too – or get started if you don’t have one installed yet.
Whether you have many or few assets, have many or no dependents, or have complex or simple affairs, creating an estate plan is critical to ensuring that your wishes are carried out and that your loved ones are not overwhelmed by the process . Getting organized now can save your life time, money and grief of loved ones when they need it most.
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So, what should you enter or revisit?
It is important to both make a will and, if possible, involve your family in the process. (iStock)
First, make sure you have an updated will. This will legally capture your wishes and make the process easier for your loved ones to process. From clarity about what happens to your assets and personal belongings to even who gets your loyalty points, being considerate in advance will help your loved ones carry out your wishes while minimizing fights between family and friends.
My suggestion is – if you have a family dynamic that makes this possible – involve your loved ones in the process. This way, family members can express their concerns and thoughts while you’re still alive and feel like they are part of the process. Moreover, some decisions can directly affect them, for example if family members want to be buried together and need to secure burial sites.
Or perhaps some family members feel more comfortable playing certain roles, while other members don’t want the responsibility. A frank conversation now can help resolve this if emotions do not prevail.
While there are online options to get a will quickly, and that is certainly better than not having a will, you may want to contact an estate planning attorney who can provide clarity on state rules governing probate. Attorneys can often also offer strategies or referrals for tax planning and efficiency information. They will also ensure that you have the appropriate witnesses and notarized certificates as required by your state.
My estate plan also includes powers of attorney for health care decisions and personal property decisions. Powers of attorney give someone the ability to make a decision on your behalf if you are unable to make it yourself, for example as a result of an accident or other intellectual disability.
In addition to determining who plays that role, it also sets parameters for that person to follow. Your health care power of attorney may include guidelines about organ donation and burial versus cremation, among other decisions about health and final wishes.
Drawing up your will and powers of attorney is a good first step, but does not cover all your wishes and information. Think about your digital assets. What do you want your loved ones to have access to your digital files, and what might you not want anyone to see? Would you like a note left on your social media account to alert friends who might not hear about something happening to you? This is something you can include directly in your will or record at the designated location in your estate and wishes planning package.
And make sure your loved ones can find everything as you put together this plan and its guidelines! It doesn’t help to have a will or power of attorney that no one can find! I wrote earlier about the Aretha Franklin saga, in which no will was found, several copies turned up, including one found in the cushions of her couch. The ensuing legal battle took five years to resolve!
My suggestion is – if you have a family dynamic that makes this possible – to involve your loved ones in the process. This way, family members can express their concerns and thoughts while you are still alive and feel like they are part of the process. Moreover, some decisions can directly affect them, for example if family members want to be buried together and need to secure burial sites.
You want to make it easy for your loved ones to find your wishes, information and documents. Consider creating a complete estate and wishes planning kit like mine Future file kit or a similar kit that you put together that contains all the information plus anything physical that a loved one or an executor might need to access in one place.
Copies of your will and powers of attorney should be left here. If you don’t want to physically put them in the kit, you can leave instructions on how to access them instead.
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I hear from people that things like safe deposit box keys are often a big challenge to find if they aren’t organized in one location, like an old kit. Sometimes a loved one doesn’t know how to contact your attorney, accountant, financial advisor, bank or other important service providers. This information should also be included in your package as part of a comprehensive estate plan.
An added benefit of having a kit is that you have one thing to grab in the event of an emergency, whether that be an accident, natural disaster or something else.
How should you get started with your estate plan or update? Consider purchasing a kit like Future File, which asks questions and helps you think about your wishes. When prompted, you can provide that information to knowledgeable service providers, starting with an estate planning attorney, to get your legal documents in order. Finally, make sure your loved ones have access to the information you can gather.
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Even though I did my estate plan and legacy kit a while ago, circumstances changed and I felt a great sense of relief after completing an update.
Don’t put it off; no one knows what tomorrow will bring, as we are constantly reminded. It gives you peace of mind knowing that it is taken care of and will save your loved ones a lifetime of heartache, as well as a lot of time and money in times of need.
