facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
What's In Your Estate Plan? Thumbnail

What's In Your Estate Plan?

The older we get, the more critical it is to ensure our affairs are in order and have an estate plan. Every adult and family needs one, not just the wealthy. If you have a plan, check it periodically to ensure it's current and follows your express wishes. Your financial advisor has a critical role to play, both in helping you to coordinate the various aspects of your estate plan, and then in assigning your assets to the trust. But what exactly is an estate plan, and what should be included?

Estate Plan Basics

An estate plan is the management and organization of your assets should you pass away. It also includes documentation determining who can make medical and financial decisions should you become incapacitated.

Most people think that estate planning includes a will. While a will is beneficial, other documents should be included in your estate plan.

  • A will (also called a last will) specifies how you want your estate to be distributed. Besides dividing up your assets, a will appoint guardianship for minor children. This last item is essential to designate; you don't want a court determining who your children should live in the event of your death. If your estate includes a revocable trust, a will is still needed. Called a "pour-over will," the goal of this document is to cover any assets that may have not made it over to the trust.1
  • An advanced medical directive (medical power of attorney) establishes who can make medical decisions for you should you become unable to do so. A medical power of attorney also allows you to designate a conservator should you become mentally incapacitated.1
  • A living will details to your physicians what type of care you want to receive at the end of your life when you face a terminal illness or are in a vegetative state. Do not resuscitate (DNR) and do not intubate orders are listed here. While a last will and testament is designed to specify your wishes upon your death, a living will determine what happens to you while you're still alive.1
  • Much like a medical power of attorney, a financial power of attorney appoints someone to handle your financial affairs should you become unable to do so. There are two different types of financial powers of attorney: a durable power of attorney and a springing power of attorney. A durable power of attorney goes into effect as soon as the documents are signed, whereas a springing power of attorney only goes into effect if you become mentally incapacitated.1
  • A revocable living trust is a more detailed document detailing what happens after you're gone or incapacitated and while alive. At its core, a revocable trust is a vehicle to hold your assets, meaning that it's essentially an empty vessel until assets are moved over. A revocable living trust can help manage various assets and beneficiaries if you have a more complicated estate. As the trustee, you'll still have control over your assets while they're in the revocable living trust, and assets held in the trust will avoid probate after your death.1,2

Estate plans are a necessary part of life, albeit one that no one wants to think about. But having an estate plan is one of the best things you can do for your loved ones. You'll gain peace of mind knowing your family is cared for, no matter what life throws at you.

  1. https://www.investopedia.com/articles/pf/07/estate_plan_checklist.asp
  2. https://www.thebalance.com/what-is-a-revocable-living-trust-3505191

This content is developed from sources believed to provide accurate information and provided by Twenty Over Ten and Linden Wealth Management LLC. It may not be used to avoid any federal tax penalties. Please consult legal or tax professionals for specific information regarding your situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.

Schedule Your Initial Conversation