Estate Planning Preparation - Worksheet & Guide

This worksheet and guide will help you understand the process and the essential elements involved in estate planning. It’s designed to help you organize your information, clarify your goals, and feel prepared to create your estate plan with confidence.
An Estate Plan is a comprehensive document or set of documents that details how you want your personal and financial affairs to be handled after your death. It is not only about distributing assets but also about planning for your loved ones and your own future needs should you ever become unable to care for yourself.

The importance of having an Estate Plan cannot be understated.

It allows you to:
1. Specify how your assets will be distributed after your death. 2. Name a guardian for your minor children.
3. Designate someone to manage your financial affairs if you become incapacitated.
4. Specify your wishes for medical treatment if you become unable to communicate them.
5. Minimize potential estate taxes and probate fees.

Getting started is easy

Take your time to read through this guide and make sure you understand each aspect before moving forward.
Estate planning can be complex, but with careful planning and consideration, you can create a plan that will ensure your wishes are carried out and your loved ones are cared for.

Choosing a Will or a Trust

Deciding between a Will or Trust is an essential step in creating your estate plan, and understanding their differences is key to making an informed decision.
If you have not yet completed our software guided onboarding questions, which help inform a best-fit recommendation, please let us know and we’d be happy to walk you through them!

What is a Will?

A will, also known as a last will and testament, is a legal document that communicates your desires regarding the distribution of your property and the care of any minor children after your death.
The person who carries out the instructions in your will is called the executor. Wills are essential for those who want to clearly state their wishes, especially regarding guardianship, but may not be ideal for those seeking privacy or to avoid probate.

What is a Revocable Living Trust?

A revocable living trust allows you to transfer ownership of assets into your trust during your lifetime, maintain control while alive, and pass assets to beneficiaries without probate. Trusts can also provide for asset management if you become incapacitated. They require more ongoing maintenance but offer privacy, flexibility and greater control over beneficiary distributions.

Choosing a backup Guardian

In the event of your untimely death or incapacity, having a designated backup guardian for your minor children is crucial. This person will assume the responsibility of caring for your children, so it's essential to consider this decision carefully.

If a minor child's parents pass away or become incapacitated and cannot care for them, a court will appoint a guardian.
By designating a backup guardian in your estate plan, you ensure that the person you trust most will be caring for your children. Be sure to consider:
- Willingness to Serve: The person you consider should be willing and able to take on the responsibility.
- Age and Health: Consider the potential guardian's age and health status. They should be capable of managing the rigors of child-rearing.
- Location: If the person lives far away, your children may have to relocate, which can be an additional stress factor.
- Parenting Style and Values: Consider if their parenting styles, religious beliefs, and moral values align with yours.
- Relationship with the Children: It's beneficial if the children already have a positive relationship with the potential guardian.
- Financial Stability: While the guardian doesn't have to support your children financially (that's what a will or trust is for), the person should be financially responsible.

Remember, it's crucial to have open discussions with potential guardians to ensure they're willing and able to take on the responsibility.