Planning is second nature for many professionals. We plan vacations, home upgrades, family gatherings, and even dinner. But when it comes to estate planning, it’s often pushed to the bottom of the list.
While it may not be exciting, estate planning is essential to protecting your family, your assets, and your legacy, and is an essential part of a comprehensive financial plan.
A well-crafted estate plan helps answer critical questions like:
An estate plan includes a variety of legal documents. The five must-haves one should consider for a foundational level estate plan are as follows:
Your will is the foundation of your estate plan. The will is the legal document that allows you to provide clear instructions on how you would like your affairs managed following your death. It allows you to:
Without a will, one is said to die “intestate,” which puts the court system and state laws in control of how your assets are passed and to whom.
The advance directive is a legal document that outlines your medical treatment preferences if you’re unable to speak for yourself. It may include:
Depending on your state of residence, an advance directive can be referred to as a healthcare directive, advance medical directive, designation of health care surrogate, or healthcare proxy.
A durable POA is the legal document that authorizes someone to act on a wide range of financial and legal matters on your behalf, such as:
A durable POA can be effective immediately (aging parents) or can become effective if you are incapacitated (dementia). If you do not have a power of attorney in place, your family may have to go to court to have you declared incompetent to take care of your financial matters.
The healthcare power of attorney is the legal document that authorizes someone to act on medical decisions on your behalf if you are unable to do so. They can:
While the advance directive outlines your wishes, your healthcare POA ensures those wishes are carried out.
A revocable trust helps your estate avoid probate and ensures privacy when distributing your assets. It allows you to:
This type of trust can provide a smoother transfer of wealth, minimize delays, and reduce legal expenses, providing an additional layer of privacy. A revocable living trust may also offer additional creditor protection for your heirs and allows you to dictate by who and how trust assets are managed for your beneficiaries. This type of trust is fully revocable during your lifetime and becomes irrevocable upon your death. One critical relationship within a revocable trust is the role of a trustee. Typically, during your lifetime, you name yourself as trustee, but the revocable trust, like many other trusts, allows you to name a successor trustee to manage the trust assets upon your death or incapacity. The trustee can be a friend, family member, or a third-party corporate trustee, and each can serve alone (sole trustee) or jointly (co-trustee). The corporate trustee relationship is vital to consider since many individuals do not have experience managing money in a fiduciary capacity for others.
Don’t forget – beneficiary designations override your will. Ensure the beneficiaries listed on your retirement accounts, life insurance policies, and annuities align with your estate planning intentions.
Estate planning isn’t just about legal documents. It’s about protecting loved ones, simplifying difficult transitions, and ensuring your wishes are honored.
Your estate documents should be reviewed every 5–7 years or after a significant life change (marriage, divorce, new child, relocation, etc.).
At Spaugh Dameron Tenny, our financial planners and professionals can help you understand your documents and will work closely with your board-certified estate attorney to build a comprehensive estate plan that fits your life and legacy. Because estate plans can be complicated, it is recommended that you discuss your specific situation with your financial planner and a board-certified estate planning attorney licensed in your state of residence to ensure you are drafting the appropriate documents.
A foundational estate plan typically includes a will, an advance healthcare directive, a durable power of attorney, a healthcare power of attorney, and a revocable trust.
If you pass away without a will, your assets are distributed according to your state’s intestacy laws, which may not align with your preferences.
Every 5–7 years or after a major life event such as marriage, divorce, having children, or the loss of a loved one.
Yes. Beneficiary designations take legal precedence over instructions in your will.
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Jordan Bilodeau, CFP®, CEPA, is the Director of Planning & Strategy at Spaugh Dameron Tenny, where he leads firmwide planning initiatives and helps clients navigate complex financial decisions. With experience in portfolio design, tax strategies, and business succession planning, Jordan works with executives, physicians, dentists, and successful retirees to coordinate every aspect of their financial lives. He holds both the CERTIFIED FINANCIAL PLANNER® and Certified Exit Planning Advisor designations and has a Master’s degree in Wealth and Trust Management, providing tailored guidance for clients.
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