An Estate Plan Checklist: Protect Your Assets and Loved Ones
An estate plan checklist is for anyone who wants to ensure their assets are protected, their loved ones cared for, and their wishes honored. Whether starting from scratch or reviewing an existing plan, a clear checklist gives you peace of mind.
Here’s where you should start with your estate plan checklist:
#1 Draft a will
At the heart of every estate plan is a will, a legal document that outlines how your assets will be distributed after your death. It appoints an executor who manages your estate. For parents, it’s an opportunity to designate guardians for minor children, a critical step in securing their future. As life changes—think marriage, divorce, or the birth of a child—review and update your will to reflect your current wishes.
#2 Establish trusts
Trusts go beyond the basics of a will. They can manage and distribute your assets while potentially reducing taxes and avoiding probate. A revocable living trust allows flexibility during your lifetime, letting you adjust its terms as your circumstances evolve. An irrevocable trust provides greater protection from creditors and tax advantages but cannot be changed once established.
#3 Assign powers of attorney
A well-rounded estate plan prepares for more than just what happens after your death; it also addresses what happens if you become incapacitated. A financial power of attorney gives your agent authority over money matters, while a healthcare power of attorney allows them to make medical decisions in line with your preferences. Choosing the right people for these roles is crucial, as they will be your voice during critical moments.
#4 Create an advanced healthcare directive
An advance healthcare directive, often called a living will, goes hand-in-hand with a healthcare power of attorney. This document spells out your preferences for medical treatment if you can’t communicate them yourself. It can cover decisions about life-sustaining measures, resuscitation, and organ donation. By creating an advance directive, you provide clear guidance to loved ones and healthcare providers, reducing the emotional burden on your family during difficult times.
#5 Review beneficiary designations
Many financial accounts, including retirement plans and life insurance policies, allow you to name beneficiaries. These designations override instructions in your will or trust — review them regularly to ensure your financial account beneficiaries are in step with your will or trust. If minor children are involved, responsibly manage the trust by pairing it with a beneficiary designation.
#6 Plan for taxes
Estate planning often includes strategies to minimize tax burdens, such as gifting during your lifetime, creating trusts, or making charitable contributions. Federal and state estate tax laws can change over time, so it’s a good idea to consult a tax advisor or estate attorney to align your plan with current regulations.
#7 Inventory digital assets
An estate plan isn’t complete without accounting for online assets. This includes email accounts, social media profiles, cryptocurrency, and other digital property. Creating an inventory of these accounts, along with access instructions, ensures they can be managed or closed as needed–whether it’s preserving family photos on a cloud account or safeguarding financial data.
#8 Write a letter of intent
While not legally binding, a letter of intent can add a personal touch to your estate plan. This document provides practical guidance to your executor or loved ones, covering details like funeral preferences or personal messages to beneficiaries. It’s also a good place to address wishes that don’t fit neatly into legal documents, giving your family clarity and comfort during a challenging time.
#9 Secure life insurance
Life insurance plays a vital role in protecting your loved ones financially. It can cover immediate expenses like funeral costs and outstanding debts while providing long-term support to maintain your family’s lifestyle. Whether replacing lost income or funding your children’s education, life insurance ensures your family’s needs are met even in your absence.
#10 Regularly review and update your plan
An estate plan is not a one-and-done task—it needs to evolve alongside your life. Significant events such as a marriage, divorce, new child, or inheritance should trigger a review of your plan. Additionally, tax laws and regulations change over time, so revisiting your estate plan every three to five years is a good practice. Staying proactive ensures that your plan remains effective and relevant.
An estate plan isn’t just a document—it’s a gift of clarity and security for you and your loved ones. Following this checklist, you proactively protect your assets, honor your wishes, and ease the burden on those you care about most. Whether drafting a will, assigning powers of attorney, or keeping your plan up to date, each action ensures you have a legacy in line with your wishes.
The information contained in this document is provided for informational purposes only and should not be construed as individualized advice. For individualized advice, please consult with your adviser.
