The 10-Step Blueprint to the Estate Planning Process

Estate planning is about making decisions now to ensure your loved ones are cared for, and your wishes are honored in the future.

It’s not just for the wealthy – anyone who owns property, has dependents, or wants to have a say in their end-of-life care can benefit from a well-structured estate plan.

In this guide, we’ll walk you through the key steps of the estate planning process, the essential tools involved, and important considerations along the way.

Step 1: Take Stock of Your Assets and Liabilities

The first step in the estate planning process is to create a detailed inventory of everything you own and owe. This includes:

• Real estate holdings
• Vehicles
• Bank and investment accounts
• Retirement accounts like 401(k)s and IRAs
• Life insurance policies
• Business ownership interests
• Valuable personal property like jewelry, art, and collectibles
• Debts, including mortgages, loans, and credit card balances

Having a clear picture of your net worth is essential for making informed decisions about how you want your estate divided.

Step 2: Define Your Estate Planning Goals

Next, think through your specific goals and priorities. What do you want to accomplish with your estate plan? Common objectives include:

• Providing for a surviving spouse and children
• Minimizing estate taxes and probate costs
• Donating to charitable causes
• Establishing a legacy through a family business or foundation
• Specifying medical and end-of-life care preferences
• Protecting assets from creditors or legal claims
• Providing for a child with special needs
• Passing on family values along with family wealth

Your unique goals will shape the strategies and tools employed in your estate plan.

Step 3: Organize Important Documents

Gather and organize key documents that will be essential for executing your estate plan and administering your estate. These may include:

• Birth, marriage, and divorce certificates
• Social security card
• Property deeds and vehicle titles
• Bank, investment, and retirement account statements
• Stock and bond certificates
• Life insurance policies
• Digital asset records and login credentials
• Business ownership or partnership agreements

Keep these documents secure but accessible to your fiduciaries. A fireproof safe or safety deposit box can offer an added layer of protection.

Step 4: Select Your Estate Planning Tools

With your goals defined, you can select the estate planning vehicles best suited for achieving them. A few of the most common tools are:

Last Will and Testament

The foundational estate planning document that names a personal representative, beneficiaries, and guardians for minor children. A will only becomes effective upon death.

Revocable Living Trust

Allows you to maintain control of your assets during life but pass them to beneficiaries outside of probate upon death. Offers privacy and flexibility.

Durable Power of Attorney

Grants someone authority to handle financial matters on your behalf if you become incapacitated

Healthcare Surrogate

Specifies your medical treatment in case of incapacitation.

Living Will

Specifies your end-of-life care wishes.

Beneficiary Designations

Allow you to transfer certain assets like life insurance and retirement accounts directly to chosen individuals outside of probate.

An estate planning attorney can advise on the ideal tools for your circumstances and goals.

Step 5: Name Key Roles

Estate planning isn’t a solo endeavor. You’ll need to name trusted individuals or institutions to carry out various roles:

• Personal Representative: Manages the distribution of your estate per your will
• Trustee: Manages assets placed in a trust for the benefit of your beneficiaries
• Guardian: Takes legal responsibility for your minor children if you pass away
• Healthcare Surrogate: Makes medical decisions on your behalf if you’re incapacitated
• Financial Agent: Handles financial affairs if you’re unable to

Choose people who are responsible, aligned with your values, and willing to serve. Discuss your wishes with them upfront.

Step 6: Review Beneficiary Designations

Ensure beneficiary designations on life insurance policies, retirement accounts, and other financial products still reflect your current wishes. These assets pass directly to named beneficiaries, superseding a will.

Step 7: Consider Estate Tax Implications

Engage a financial advisor or estate planning attorney to discuss strategies for minimizing potential estate tax liability. Tactics may include making lifetime gifts, establishing a trust, or donating to charity.

Step 8: Create or Update Your Estate Plan

With all the groundwork laid, you’re ready to create your estate plan. Work with a qualified estate planning attorney to draft, review, and finalize all necessary documents. Ensure everything aligns with your goals and complies with state laws.

Step 9: Store Documents Safely Yet Accessibly

Once signed, store your estate plan documents in a secure location like a fireproof safe or your attorney’s office. Let your personal representative and trusted family members know how to access them if needed.

Step 10: Review and Update Regularly

Estate planning isn’t a one-and-done proposition. Review your plan every few years and after major life events like marriage, divorce, the birth of a child, or a significant change in assets. Update documents as needed to reflect your current wishes.

Getting Started on Your Estate Plan

The estate planning process can feel overwhelming, but it doesn’t have to be. Breaking it down into manageable steps and working with a trusted advisor can make it far less daunting. And the peace of mind that comes with having a plan in place is invaluable.

At Vollrath Law, we’re committed to making the estate planning process as smooth, effective, and understandable as possible. Our knowledgeable estate planning attorneys will work closely with you to craft a personalized plan that protects your assets, provides for your loved ones, and ensures your legacy lives on.

If you’re ready to get started or have questions about the estate planning process, we invite you to contact our office to schedule a consultation. Together, we can ensure your wishes are heard and honored, both during life and beyond.