Estate Planning: Start With a Checklist

A recent poll of affluent investors discovered that the component of financial planning that they most desired assistance with was estate planning. Although the United States will see unprecedented transfers of wealth in the next four decades, many wealthy households are not prepared to pass their assets to the next generation.

Use Recommendations
(Photo credit: Wikipedia)

According to experts, the first thing to do in preparing your estate plan is to create a checklist with your financial advisor. This checklist should include the following items:

  • Draft or update your will: In your will, state your wishes concerning the distribution of your money and possessions, as well as the guardianship of any minor children you may have at the time of your death.
  • Consider whether one of the many forms of trust accounts are right for you: There are a multitude of trust accounts that may assist the creator with avoiding taxes, among other purposes.
  • Draft a letter of instruction: A letter of instruction details your wishes for funeral and burial arrangements. This letter may also state where important documents and valuables are located.
  • Execute a health care directive and financial power of attorney: These documents protect you in the event that you become incapacitated and unable to make financial or medical decisions for yourself.
  • Purchase life insurance or update the beneficiary designations on your life insurance policy: Life insurance provides your heirs with an immediate source of cash immediately upon your death.
  • Review your retirement plans: Be sure that your beneficiary designations are up to date and appropriate.

For assistance with preparing for and creating your estate plan, contact us at (626) 696-3145.

Request A Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.