Pieces of the Estate Plan Puzzle

Whatever motivates you to start an estate plan, it is important that you start making one early. Even if you made an old one, you probably want to update it. While the will may be a cornerstone of an estate plan, there are still other parts of the plan to consider. You have to choose an executor and there are multiple incapacity documents that you might want to fill out.

If you have children, you need to select a guardian in case you and your spouse die, name a trustee to manage the money left for your child’s care, and decide on a successor custodian for custodial bank accounts. Choosing a trustee and a guardian are important decisions and can require much thought. Furthermore, you have to consider how you want the money to be distributed to the children — in portions, or in its entirety once they reach a certain age?

Many attorneys encourage clients to set up trusts for estate tax savings. Wealthier clients will have more tax savings strategies to consider when setting up such trusts. Business owners also have their own special set of considerations too.

Once you have all of your documents together for your estate plan, it is important to sign them, get them notarized if required in your state, and ensure that your executor has the original or knows where the original is located.

See Ashlea Ebeling, How to Write Your First Estate Plan, Forbes, Jan. 26, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.