Why Estate Planning Matters
Imagine you’ve spent a lifetime building a home, saving money, and creating memories with loved ones. What happens to all of that when you’re no longer here? Who makes decisions if you’re unable to? These are tough questions, but answering them now can bring peace of mind and protect your loved ones from unnecessary stress and uncertainty.
Estate planning isn’t just for the wealthy—it’s for anyone who wants to ensure their wishes are honored and their family is cared for. You could think of estate planning like writing a letter to the future, guiding your loved ones on how to handle what you leave behind.
The Five Key Decisions in Estate Planning
A well-thought-out estate plan revolves around five major decisions. Let’s break them down with fictional examples so you can see how they might apply to you.
Decision 1: Choosing Your Beneficiaries – Who Gets What?
This is WHO will get your assets when you pass away. You can select people, organizations or a combination of both.
A couple may decide after creating their estate plan to leave their assets equally to their two children. However, they may also want to donate a portion to a charity that has supported them during tough times. This allows them to provide for their family while also giving back to a cause close to their heart.
Ask yourself: Who do you want to inherit your assets? Do you want to include charitable giving in your plan?
Decision 2: Method of Distribution – How Will They Receive It?
Rather than giving everything at once, you can set up a structured plan based on your beneficiaries’ ages and financial capabilities. Please keep in mind that those young beneficiaries will have immediate access to funds for health care, education, and support. If you have a beneficiary with special health needs, you can leave assets for them through a special needs trust.
Consider a fictional example John and Sarah are worried about their 20-year-old son inheriting too much too soon. They set up their plan so he would receive 1/3 at age 25, 1/3 at 30, and the rest at 35, ensuring financial maturity before gaining full access.
Consider: Would a lump sum be wise for your beneficiaries, or would a staged distribution be better?
Decision 3: Choosing a Successor Trustee/Executor/Financial Power of Attorney – Who Will Handle Your Finances?
This person will be responsible for managing your estate and ensuring your wishes are carried out.
Much like the captain of a ship. They need to be able to make decisions under pressure and guide the process so that your wishes are carried out.
The type of person who makes a good trustee is someone who is financially responsible, would handle finances similar to you, and is generally a good decision maker. If you don’t have a family member or friend who fits the bill, you can consider a professional trustee. Generally, there are 2-3 successors named (in order of preference).
Who do you trust to handle your finances when you no longer can?
Decision 4: Health Care Power of Attorney – Who Makes Medical Decisions for You?
If you’re unable to make medical decisions for yourself, you’ll need someone who can.The type of person you name here would need to be able to make decisions during a difficult, emotional time. You will have the ability to state your end of life and organ donation wishes in this document as well. Generally, there are 2-3 successors named (in order of preference).
Consider a fictional example that highlights what can happen when this is not cared for. When James passed away unexpectedly, his wife and children assumed they could easily make decisions about his medical care and assets. However, because there was no trust or clear directives, family members began arguing over treatment options and who had the right to make decisions. His children disagreed on how to handle his medical care. This created lasting family tension. A simple estate plan could have prevented these disputes and provided clear guidance for his loved ones.
Ask yourself: Who in your life can make tough medical choices under pressure?
Decision 5: Guardian for Minor Children – Who Will Care for Your Kids?
If you have young children, you need to decide who would care for them if something happened to you.The guardian will work with the trustee to access funds for any minor children. We often see your parents, siblings, or dear friends named here. We also see other children you have that are over the age of 18 named here. Generally, there are 2-3 successors named (in order of preference).
Who would raise your children if you weren’t here?
Take Control of Your Future
Estate planning isn’t about money—it’s about making choices today that protect your loved ones tomorrow. If you don’t make these decisions, the courts will, and the results may not align with your wishes.
Final Thought: What legacy do you want to leave? Start planning today so your family can have clarity and security in the future. If you need guidance, reach out, and let’s build a plan that works for you.