#1 – People
Who are the Important People in your life? Beginning with yourself, they also likely include your loved ones: your spouse if you are married, children and grandchildren if you have any, perhaps your parents, siblings or other relatives. Beyond these, however, “Important People” also could include charities, special causes, colleges or universities, or churches to which you are committed. For some, “Important People” could even include pets. Spend some time thinking about the impact others have had on your life. Make a list and jot notes if you like. This is where the planning process truly begins.
#2 – Property
By Property we mean your assets in general. Make a list of the assets you own or control. At this point, you do not need to identify insurance policy numbers and exact dollar values. Rather think through your assets in terms of their nature (cash, stocks, bonds, real estate, etc.); their value in thousands of dollars; and your ownership interest: Do you own assets in your name only, in joint tenancy with someone else, or through a trust agreement or some other arrangement? Be sure to include often-overlooked assets like life insurance (the death benefit, not the cash value), business interests, and any inheritance you may expect to receive.
#3 – Plans
After identifying the Important People in your life and your Property, the next step is to consider the plans you would make for those people (including yourself) and that Property in the event of your own incapacity or death.
Taking the First Steps:
What's Most Important to You
Who are the important people in your life?
Estate planning starts with recognizing the important people in your life. This includes your spouse, children, grandchildren, parents, siblings, and other significant individuals. It could even extend to charities, causes, universities, or churches that hold special meaning for you. Take the time to reflect on the impact these people and organizations have had on your life. Make a list and jot down notes to lay the foundation for your estate planning journey.
What do you own?
Next up is your property—the assets you own or control. Create a comprehensive list, focusing on the nature of your assets (cash, stocks, real estate, etc.), their approximate value, and the ownership arrangements (individual, joint, trust, etc.). While precise details such as policy numbers and exact values aren’t necessary right away, it’s important to consider all assets, including often-overlooked ones like life insurance policies (death benefit), business interests, and potential inheritances.
What do you want to happen?
There will be a lot of critical questions and decisions regarding incapacity or death scenarios. Who would you entrust with important decisions if you were unable to make them yourself? How would you provide for your minor children? What are your desired asset distribution arrangements? By addressing these issues, we’ll craft plans that safeguard your loved ones and ensure your wishes are carried out, while considering factors such as probate avoidance, tax minimization, charitable bequests, and special needs provisions.
These Are The Important Questions To Consider
These are just a few of the issues to consider when approaching the planning process. They are much more important than the “treasure hunt” for legal documents at this stage.
- Who would you name to make decisions for you if you could no longer do so yourself?
- Would the same person handle your finances and your personal and health care decisions?
- Who would care for your minor children?
- How would you distribute your assets to your heirs?
- Would you prefer to spare your heirs the potential cost and hassles of the probate process?
- Would you like to minimize the impact of estate taxes ... or maximize the impact of a charitable bequest?
- Is there someone in your family with special needs for whom you would like to provide?
- Is there someone who perhaps should not receive a great deal of (or any) money without some outside oversight?
