6 Steps to Get Your Affairs in Order

Jon K. HancockHancock Advisors LLC
6 Steps to Get Your Affairs in Order
It is certainly nobody’s idea of fun, but planning for the inevitable future is a worthwhile endeavor that gives you control over your legacy and eases the process for your loved ones who will settle your estate.
It is crucial that your estate plan meets your state’s legal requirements.  You can consult with an estate planning attorney to ensure that documents are correctly prepared, or as an alternative the site Trust & Will says “We’re here to help you through life’s most challenging moments with unlimited chat and technical support. Get personalized guidance when you choose a service-focused plan.”

1. What do you want to accomplish? Do you need to provide for minor children under age 18? Or are your children adults?  Will you leave assets to other beneficiaries such as friends, relatives, or charities?  Do you want to minimize estate taxes?  Do you value the privacy of your affairs?
   

A Will is usually a good start. A will is a legal document that takes effect upon your death. The one thing that a will can accomplish that a trust cannot is to allow its creator to name guardians for minor children.
What about a Trust? Trusts offer privacy, discretion over how assets are distributed, and potential estate tax benefits. 
Are you interested in reducing estate taxes? If so, an irrevocable trust might make sense. An irrevocable trust can be used to minimize the estate's worth for estate tax purposes. Irrevocable trusts can also aid in asset protection in court cases, in addition to estate tax reasons.
You may also decide to create a living trust, which transfers your assets to your beneficiaries, maintains privacy, and avoids probate headaches

1. Create an inventory of your assets.  Consider making a list of your real estate, bank accounts, insurance policies, investment accounts, and other items with substantial value.  Make sure your loved ones know where important documents and financial statements are located in the event of your sudden passing - this can prevent unnecessary stress and confusion during a difficult time.
   
2. Choose the right trustee (Trust) or executor (Will). Appoint someone who is organized, dependable, fair, and financially savvy.  Taking the time to select a trustworthy individual or institution will give you peace of mind knowing that your affairs will be handled properly.
   
3. Be sure to designate and regularly update your beneficiaries. This is the easy button in estate planning!  You’ll find beneficiaries for retirement accounts such as IRAs and 401(k)s, and life insurance policies.  Keep in mind that designated beneficiaries trump what is in your Will or Trust.
   
4. Prepare for possible incapacitation. It's important to make sure your estate planning is complete by preparing legal documents such as a durable power of attorney for financial matters and a medical power of attorney for medical decisions. These documents appoint trusted individuals to make decisions on your behalf when you can't. 
   
5. Update your estate plan regularly.  Your life can change in many ways. You may get married or divorced, have children or lose loved ones. These events can affect your goals and priorities. You may also change your mind about the causes you care about. That's why you need to check and update your plan regularly. This is something we always discuss at client annual reviews.
   

Estate planning is not a one-size-fits-all process, and we want to make it clear that the steps we have mentioned are just a general guide.  Our goal is to start a conversation and help you create or update a plan that suits your needs. We are always ready to answer any questions you may have - schedule a meeting at your convenience here: https://calendly.com/hancockadvisors/15-minute-get-acquainted-call​