What Should Be on Your Estate Planning Checklist?

Estate planning can be easy to put off as something you only need to worry about later in life. However, an estate plan is essential for everyone, regardless of age or financial status. Having a comprehensive plan in place can help ensure that your assets are distributed according to your wishes and that your loved ones are taken care of after you are gone.

Consulting with an experienced attorney is advisable for formulating an estate plan, but here is a checklist of some essential components:

1. Take stock of your assets and debts — This includes all real estate, bank accounts, investments, retirement accounts, life insurance policies and personal property.
2. Make a will — The core estate planning document is your will, which lets you direct how you want your assets distributed after your death. You can name an executor, designate beneficiaries and name a guardian for your children if necessary.
3. Consider setting up a trust — Another method of transferring assets to beneficiaries is creating a trust, which can avoid probate and possibly provide tax benefits. There are many types of trusts available, including revocable living trusts and irrevocable trusts.
4. Designate beneficiaries for bank accounts, retirement accounts and life insurance policies — These assets pass to beneficiaries directly, not through a will or trust.
5. Create a power of attorney — This legal document designates someone to make financial decisions in your behalf if you become mentally disabled.
6. Create advance directives — These include a living will, which outlines your wishes for end-of-life medical care, and a health care proxy, which designates someone to make medical decisions in your behalf if you are unable to make them.
7. Consult with a tax professional — Seek advice to help you understand the tax implications of your estate plan.
8. Consider working with an estate planning attorney — This will help you make sure your estate plan meets your needs and is legally valid.

Once you have a plan in place, you should review it regularly with your estate planning attorney. Update it as needed to ensure that it continues to reflect your wishes, your current financial situation and any major life changes such as marriage, divorce or the addition or loss of family members. With the proper guidance, estate planning can be a straightforward and manageable process.

Pennington Law, PLLC assists clients in Surprise, Sun City West, Buckeye, and surrounding areas in Arizona with estate planning. Call 623-208-7867 or contact us online for a free consultation.