Making the Future Easier for Your Heirs Through Estate Planning
By Brian Famigletti, Managing Director & Head of Marketing
Review Your Assets and Liabilities
Estate planning involves more than just writing a will or establishing a trust. It’s a conglomerative effort to take inventory of your estate and plan for the future.
To establish an effective estate plan, you’ll first want to list your tangible and intangible assets and debts. Experts recommend periodically taking inventory of these line items to make updates as your life circumstances change.
For non-physical assets like bank accounts, 401(k) plans, and life insurance policies, ensure your beneficiaries are updated with their current information as needed. For instance, in the event of a remarriage, a policyholder could ensure their current spouse is listed as the designated beneficiary on retirement plans and insurance policies.
In terms of tangible assets, consider assigning personal property to your heirs in advance. This can prevent confusion among heirs, with your wishes carefully outlined. A trusted estate planning attorney can help you outline and store your asset itemizations and assignments in a will.
Don’t Forget About Digital
Estate planning in the modern world might involve online assets as well. This can include emails, social media accounts, photos or documents stored in a digital drive, and even cryptocurrency.
Be sure not to neglect these items when taking inventory of your assets and liabilities. Your estate plan can include legal consent and instructions for individuals to access these accounts. Putting a plan in place for your online assets helps protect them — and your heirs — from identity theft, fraud, and hacking.
Covering Your Bases
With estate planning, clarity is kindness. Carefully documenting your desires can help your heirs to honor them. Experts recommend storing this important information in one place and revealing the location to relevant parties.
Consider creating a folder with contacts, account numbers, and passwords. You can include physical documents like deeds, titles, and a copy of your will. Some individuals also choose to write out their final wishes, including if they prefer a burial or cremation, and any funerary specifications.
Depending on your circumstances, you might also decide to prepare letters explaining why you divided assets a certain way. It’s an extra step, but it could minimize conflict during a challenging time.
Naming your estate’s executor or trustee is another key measure to ensure a smooth distribution of your assets. A professional fiduciary or a trusted family member or friend could be named as executor, depending on your unique circumstances.
Do you need assistance with estate planning? Contact Griffin Asset Management to speak with an expert.
Sources:
WSJ: 5 Things to Do Now to Make Your Estate Simpler for Your Heirs
Paths Law Firm: Your Ultimate End of Year Estate Planning Checklist
Trust & Will: How to Create Your Own Digital Estate Plan
Brilliant Law Firm: Estate Planning Made Easy: A Step-by-Step Checklist
