Estate Planning

  • August 30, 2017
  • By: Greenpath Financial Wellness

Estate planning involves deciding how you want to distribute your assets after you die. We can give you some suggestions for basic estate planning, but you should consult a good lawyer to draw up your estate plan.

Make a Will

If you die without a will, the state decides who gets what. That can cost your family time and legal fees.  If you already have a will, you should update it every few years, especially after any big life changes.


A will allows you to name an executor, the person who will be in charge of your estate. Your executor should be someone you trust completely.  And don’t forget to ask if he or she is willing to take on such a big responsibility.

Make a Living Will

Make known the kind of medical care you wish to receive. At what point do you no longer wish to receive any care?

Appoint a Power of Attorney

Designate a trusted person to handle your financial affairs if you ever become incapacitated.

Factor Probate Into Your Plan

Probate is the process of the state checking over all your assets and liabilities after you die. The court makes sure all your documents are valid and correctly filed. It can be a slow, painful and costly process sometimes. And there are ways to legally avoid probate. Talk to an attorney to understand how probate might affect your estate.

Update Beneficiaries

Insurance policies and investment accounts with properly completed beneficiary forms bypass probate and go directly to the named beneficiaries.  Contact the companies you do business with to make sure they have updated forms, and keep copies for yourself.

Review Your Property Titles

The legal status of your accounts, home and other assets will also determine whether they bypass probate.  For example, an asset that is “joint tenancy with rights of survivorship” will become the sole property of the surviving co-owner(s) when another co-owner dies.

Lower Estate Taxes

If you own a significant amount of assets consult your attorney or tax advisor to look at ways to lower your potential estate tax bill.

Consider Trusts

Trusts can be useful for avoiding probate, lowering estate taxes and providing for relatives who may not be able to manage assets on their own.  But they can also be expensive.  Talk to an attorney before agreeing to a trust.

Create a Document That Explains Everything

Just in case something happens to you, make sure your family knows how to locate your accounts, insurance policies, legal documents, safe-deposit boxes, cash reserves, attorney, financial planner and other trusted advisors. Include this important information in a document that you can give to someone you trust.

Review Your Plan

Explain your wishes to family members and close friends, especially if they might have a future role to play such as executor, guardian for your children, etc.  And encourage them to get their own estate plan.  If your relatives have their affairs in order, it could spare you a great deal of difficulty down the road and keep as much wealth as possible within the family.