7 Steps to Successful Estate Planning

By DeBlanc + Murphy
May 19, 2023

While estate planning may feel daunting and even uncomfortable, it's an important step that ensures your wishes are respected, your loved ones are protected, and your assets are preserved the way you intended.

Contrary to popular opinion, estate planning is not just for the wealthy or elderly—it's a critical aspect of responsible financial management that transcends age and income status. To help you prepare for the future, here are seven steps to successful estate planning.

Start Building a Trusted Team

First things first:Start building your estate planning team—generally composed of a financial advisor, tax professional, and estate planning attorney.

Start by asking trusted friends, family members, or colleagues for recommendations. Their personal experiences will ensure you find a knowledgeable, trustworthy, and experienced estate planning team.

Outline Your Wishes

As you outline your estate plan, consider how your assets will be distributed after passing.

For example, decide who your beneficiaries will be—family members, friends, or charitable organizations. If you have minor children, consider who would be the most suitable person to care for them if you were suddenly unable to do so.

Next, determine your wishes regarding medical treatment and end-of-life care. Finally, consider scenarios where you may be unable to communicate your preferences in the event of severe illness or incapacitation.

Get Specific to Avoid Probate

While probate is important in ensuring the orderly transfer of assets, most people prefer to avoid it. Why? It is time-consuming, costly, and public, often leading to family member disputes.

To avoid probate, include these documents in your plan:

An Advanced Healthcare Directive

A Living Will

Durable Financial Power of Attorney

Last Will & Testament

Explore Trusts

A trust is a legal entity created to hold assets on behalf of your beneficiaries. When establishing a trust, you have control over what assets are included, who receives what, and how the distribution occurs. By creating a well-structured trust, you can ensure that your intentions are carried out precisely as planned.

Plan for Taxes

Estate taxes, also known as inheritance taxes or death taxes, come into play when assets are transferred from the deceased party to beneficiaries. If a significant portion of your estate consists of non-liquid assets (think a house or stocks), it may be necessary to sell those assets to pay those taxes. Be sure to plan for this.

Keep Beneficiaries in the Loop

Keeping beneficiaries informed promotes transparency—ensuring you prevent confusion or misunderstandings from arising after your passing.

In addition, clear communication ensures that your beneficiaries understand how your estate will be distributed and can help minimize potential disputes or conflicts among family members.

Don’t Neglect Digital Assets

This is easy to forget, but most of us have important photos and documents saved in digital form—whether on social media accounts, hard drives, or in the Cloud. Chances are that these resources are password-protected. And unfortunately, service providers often refuse to disclose passwords to beneficiaries.

To mitigate the risk of losing valuable and cherished documents, designate a "digital fiduciary" in your estate plan. This individual will access and preserve your digital assets according to your wishes.

Take Control of Your Financial Future with Professional Estate Planning Assistance

Ready to secure your financial future and ensure a seamless estate transition? Our team of expert estate planning professionals is here to guide you every step of the way. From minimizing estate taxes to preserving your assets and protecting your loved ones, we provide comprehensive solutions tailored to your needs.

Don't wait to secure peace of mind for yourself and your family. Contact us today to get started and take control of your estate planning journey.

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