Protecting Your Legacy - Estate Planning Do’s and Don’ts

Estate planning is a crucial step to ensure your assets are distributed according to your wishes and your loved ones are financially secure after your passing.

However, it's not just about creating a will; there are several do's and don'ts to consider to help you make informed decisions about your legacy.

The Do's of Estate Planning

1. Do Start Early
Begin estate planning as soon as possible. It's not only for the elderly or the wealthy. Having a plan in place can provide peace of mind at any age or income level.

2. Do Create a Will
Draft a comprehensive and legally binding will that clearly outlines your wishes for asset distribution. Update it periodically to reflect changes in your life.

3. Do Appoint an Executor
Choose a responsible and trustworthy individual to carry out your wishes as an executor. Ensure they understand their responsibilities.

4. Do Consider a Trust
Explore the benefits of establishing a trust to protect assets, provide for minor children, and potentially reduce estate taxes.

5. Do Communicate Your Intentions
Discuss your estate plans with your family and loved ones. Transparency can help prevent disputes and confusion in the future.

6. Do Review Beneficiary Designations
Regularly review and update beneficiary designations on insurance policies, retirement accounts, and investment accounts to ensure they align with your wishes.

7. Do Consult Professionals
Seek advice from experienced estate planning attorneys, financial advisors, and tax professionals. They can help you navigate the complexities of estate planning effectively.

8. Do Consider Tax Implications
Understand the potential tax implications of your estate plan and explore strategies to minimize estate and inheritance taxes.

The Don'ts of Estate Planning

1. Don't Procrastinate
Delaying estate planning can lead to complications and disputes, and potentially probate. Start the process as soon as possible.

2. Don't DIY
While there are DIY estate planning tools available, they may not cover all your needs or ensure legal compliance. It's advisable to consult with professionals.

3. Don't Forget to Update
Failing to update your estate plan can result in unintended consequences. Review and modify your plan when significant life events occur, such as marriage, divorce, or the birth of children. A good rule of thumb is to do a full review every 3-5 years.

4. Don't Neglect Digital Assets
Remember to include digital assets like social media accounts, online banking, and cryptocurrency in your estate plan.

5. Don't Overlook Healthcare Directives
Draft advance healthcare directives, such as a living will and healthcare power of attorney, to make your medical preferences clear in case you become unable to communicate.

6. Don't Forget About Guardianship
If you have minor children, don't overlook naming a guardian who will take care of them in case something happens to you.

7. Don't Disregard Your State's Laws
Estate laws vary by state, so make sure your estate plan complies with the specific laws in your jurisdiction.

Estate planning is an essential part of securing your legacy and ensuring your loved ones are taken care of. By following these do's and avoiding the don'ts, you can create a comprehensive and effective estate plan that reflects your wishes and minimizes potential complications in the future. Consulting with professionals is a crucial step in this process to ensure your plan aligns with your unique circumstances and local laws. At Alexander & Associates our comprehensive estate plan includes a trust, will, power of attorney, health care directive, guardianship and more. Call to schedule your free consultation.