Estate Planning Checklist: A Step-by-Step Guide

from NCOA

Have you done your estate planning yet? Or do you keep kicking that can down the road?

The idea of planning your estate can be daunting. But it’s an important step in ensuring your wishes are carried out after you die or become unable to speak for yourself. Whether you have a modest estate or sizeable assets, a well-crafted plan allows you to protect your legacy and the people you care about.

This guide, complete with an estate planning checklist, walks you through the basic steps in creating a comprehensive estate plan.

Contrary to popular belief, estate planning isn’t just for wealthy people. It should be considered by anyone who wants to make sure their wishes are respected and their assets are distributed in the exact manner they want after they pass. Estate planning can also address any financial obligations a person leaves behind after they die (so their family doesn’t have to).

Other benefits of a sound estate plan include:

• Minimizing estate taxes
• Avoiding the delays and costs of probate—the legal process of distributing a person’s assets and settling their debts after they pass away
• Making health care decisions in advance
• Lessening the stress on family during a difficult time

With a calculated plan in place, you’ll feel confident knowing you’ve taken steps to care for both your future and your family’s.

Estate planning checklist: Where to start

1. Make a will.

In most states, it’s fairly easy to create a will without a lawyer using state forms or online will maker sites. We’ve also thoroughly tested the best online will makers that allow you to create a will from the comfort of home.

2. Establish a living trust (optional but recommended)

A living trust is a legal document that lets you place your assets (e.g., your home, bank accounts, or investments) into a trust. You can still use and control those assets while you’re alive. After you pass away, the assets in the trust go directly to your chosen beneficiaries.

3. Create powers of attorney

There are several types of power of attorney, including:

• General power of attorney: Your agent handles matters like banking, bill paying, property management, and legal and insurance matters.
• Medical (or health care) power of attorney: Your agent makes health care decisions for you if you can no longer communicate your wishes due to illness or injury.
• Durable power of attorney: This is a general POA that continues even if you lose the ability to make decisions for yourself.

4. Prepare an advance health care directive

Also known as a living will, an advance health care directive is a document that states your health care preferences in end-of-life or emergency situations. This document names someone (your “health care proxy”) to make medical decisions for you based on your wishes and what matters most to you.

5. Gather and organize key documents

To make things easier for your executor and family members, it’s a good idea to gather and store important documents in one safe location.

6. Review and update your beneficiaries

Make sure your beneficiary designations are current on all financial accounts.

7. Inventory your assets and debts

8. Plan for your funeral or memorial service

9. Store all documents safely and securely

Tell your executor and trusted family members where to find them. You can also use a digital storage solution for added security. Just make sure your executor and relatives have the correct login information to access your account(s).

10. Discuss your plan with your family

Estate planning document checklist: Must-have forms

An airtight and effective estate plan starts with having the right paperwork in place. Beyond life insurance policies, property deeds, and proof-of-identity documents, make sure you have these estate planning forms organized and accessible:

• Last will and testament: Explains how your assets should be distributed and names an executor to carry out your wishes; it can also appoint guardians for minor children
• Living trust: Holds your property during your lifetime and allows it to be distributed after your death without going through probate court
• Power of attorney: Gives someone you trust the legal authority to manage your financial or health care decisions if you become unable to do so
• Advance health care directive: Outlines your medical treatment preferences in the event of serious illness or end-of-life care
• List of assets and liabilities: Helps your executor locate your accounts, property, and debts to manage your estate effectively
• Titles, mortgages, and property deeds: For your home, owned vehicles, and other property
• HIPAA (Health Insurance Portability and Accountability Act) authorization: Allows select people (of your choosing) to access your private medical information if/when needed
• Beneficiary designations: Ensures certain assets, like life insurance or retirement accounts, are passed directly to your chosen beneficiaries
• Funeral instructions: Communicates your personal wishes for your funeral, memorial service, or other end-of-life arrangements

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