Estate Planning for a Meaningful Legacy

Comprehensive estate planning often operates along a generational timeline, however, there isn’t one cookie-cutter way of planning. If you do not intend to transfer wealth to the next generation, you’re able to prioritize lifestyle, philanthropy and a focus on your individual well-being.

Determine Decision-Makers

When drafting your estate plan, choosing the right decision-makers is an important step. A documented, legally-binding will is the best place to start — without it, your estate can quickly become complicated  and your final wishes will not stand up in court. An executor is the person responsible for carrying out the details of your will and managing your estate after you pass. Your executor should be someone you trust to understand your priorities and handle your legacy with diligence and care.

You should also sign a Durable Power of Attorney (POA), which legally appoints someone to manage your financial matters if you become incapacitated or unable to make decisions for yourself. Similarly to your executor, the POA should be someone reliable and knowledgeable who you can trust to act in your best interests.

Designate Beneficiaries

The possibilities are endless when it comes to choosing your beneficiaries and how your assets are distributed. Being able to provide for your spouse, extended family such as nieces, nephews or cousins as well as friends will leave a lasting legacy with those you care about. There is also an opportunity to make a difference and support charities and causes that align with your values.

Establish Trusts

Trusts are tax-efficient vehicles that offer flexibility, control and peace of mind when deciding where your money will go and who will manage its transfer. There are many options to consider, so be sure to work with a knowledgeable partner to understand all of the details and determine which trusts make sense for you.

Revocable Trusts

Revocable trusts can be easily modified or terminated and offer the most flexibility to the grantor. Assets can be revoked until the grantor’s death, at which time the trust becomes irrevocable.

A revocable living trust allows you to manage and protect your assets during your lifetime, then avoid probate when you pass, allowing for a seamless transfer.

Irrevocable Trusts

An irrevocable trust is permanent through the grantor’s lifetime and after death. The assets held cannot be returned and have more protection as a result than they would in a revocable trust.

A spousal lifetime access trust may be a viable option because it provides financial security for your spouse while preserving assets for potential future beneficiaries. For the more philanthropic-minded, charitable remainder trusts can generate a steady source of income for both you and the trust’s beneficiaries, while establishing assets that will ultimately be given to charity when the trust ends.

Prioritize Your Well-Being

You have the ability to take time for your overall well-being. A major part of that includes your health, and paying for you and your spouse’s healthcare for the rest of your lives. Making a plan for how you’ll pay for treatment in the event of a serious illness is an important part of establishing financial security. You’ll also want to make sure that your personal wishes are documented and that you have the means to carry them out. There are many components to consider within a healthcare plan, including:

• Insurance — Disability and long-term care insurance protect against unforeseen events and ensure quality of care without straining assets.
• Healthcare proxy — A formally designated individual who will make health-related decisions on your behalf if you are unable to do so yourself.
• Living will — Outlines your wishes regarding medical treatments and provides clarity to your proxy and healthcare providers.
• Advance directive — Combines your healthcare proxy and living will to create a comprehensive, detailed plan for your care.

Be Proactive

No matter your situation, estate planning is a wide-ranging process that requires thoughtful decisions and will evolve over time. Working with knowledgeable professionals can help ensure you build a plan  tailored to you.