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The saying goes that a cobbler’s kids have no shoes. But my own experience in creating an estate and legacy planning product after the passing of my father over a decade ago has ensured that I practice what I preach.
Given that I know how important formalizing my wishes and information is, I recently updated my own estate plan. Here’s why you should update yours, too — or get on it if you haven’t already put one in place.
Whether you are asset-heavy or asset-light, have many dependents or none, or have complex or simple affairs, putting an estate plan together is critical to make sure your wishes are carried out and that your loved ones aren’t overwhelmed by the process. Being organized now helps save your loved ones’ time, money and grief when they need it the most.
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So, what should you put in place or revisit?
It’s important to both create a will, and if possible, include your family in the process. (iStock)
First, make sure you have an updated will. This will legally set forth your wishes and make the process easier for your loved ones to work through. From clarity on what happens to your assets and personal effects to even who gets your loyalty points, being thoughtful up front assists your loved ones in carrying out your wishes while minimizing fighting between family and friends.
My suggestion is — if you have a family dynamic that allows for it — include your loved ones in the process. This way, family members can voice their concerns and thoughts while you are still alive and feel like they are part of the process. Plus, some of the decisions may impact them directly, such as if family members want to be buried near each other and need to secure burial plots.
Or perhaps some family members are more comfortable playing certain roles while other members don’t want the responsibility. A frank conversation can help sort this out now when emotions aren’t in overdrive.
While there are online options to get a quick will, and that is certainly better than having no will, you may want to contact an estate planning attorney, who can give clarity on state rules that pertain to estates. Attorneys can often offer up strategies or referrals for information around tax planning and efficiency as well. They will also make sure you have the appropriate witnesses and notarization as required by your state.
My estate plan also includes powers of attorney for healthcare decisions and personal property decisions. Powers of attorney grant someone the ability to make a decision on your behalf if you cannot make those yourself, such as due to an accident or other mental incapacitation.
In addition to deciding who plays that role, it sets forth parameters for that person to follow. Your healthcare power of attorney can include directives around organ donation and burial vs. cremation, among other health and final wishes decisions.
While putting together your will and powers of attorney are great first steps, they won’t cover all your wishes and information. Think through your digital assets. What do you want your loved ones to have access to from your digital files, and what do you maybe not want anyone to see? Do you want a note left on your social media account to alert friends who may not hear about something happening to you? This is something you can put into your will directly or lay out in the given location within your legacy and wishes planning kit.
And, as you put this plan and related directives together, make sure your loved ones can find everything! It doesn’t help to have a will or power of attorney that nobody can find! I previously wrote about the Aretha Franklin will saga, where no will was found, then several different copies surfaced, including one found in the cushions of her couch. The ensuing legal battle took five years to resolve!
My suggestion is — if you have a family dynamic that allows for it — include your loved ones in the process. This way, family members can voice their concerns and thoughts while you are still alive and feel like they are part of the process. Plus, some of the decisions may impact them directly, such as if family members want to be buried near each other and need to secure burial plots.
You want to make it easy for your loved ones to find your wishes, information and documents. Consider building out a full legacy and wishes planning kit, like my Future File kit or similar kit you put together, that contains any information plus anything physical that a loved one or estate executor may need to access in one place.
This is where copies of your will and powers of attorney should be left. If you don’t want to physically put them in the kit, you can instead leave instructions on how to access them.
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I hear from people that things like safe deposit box keys often are a major challenge to find if they are not organized in one location, like a legacy kit. Sometimes, a loved one may not know how to contact your estate planning attorney, accountant, financial advisor, bank, or other key service providers. This information should also make it into your kit as part of a comprehensive estate plan.
A side benefit of having a kit is that you have one thing to grab in case of an emergency situation, whether that be an accident, natural disaster or otherwise.
How should you get started on your estate plan or your update? Consider getting a kit like Future File that asks questions and helps you think through your wishes. Where prompted, take that information to expert service providers, starting with an estate planning attorney, to get your legal documents in order. Finally, make sure your loved ones can access that information you can put together.
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Even though I did my estate plan and legacy kit a while ago, circumstances changed and I felt a ton of relief after finishing an update.
Don’t put it off — nobody knows what tomorrow may bring, as we are constantly reminded. It will give you peace of mind to know it is taken care of and will save your loved ones a lifetime of grief, as well as a ton of time and money in their time of need.