Most people understand that they should have certain basic estate planning documents in place.
A will. A durable power of attorney. Health care directives. Perhaps a trust, depending on the family’s circumstances.
Knowing these documents are important, however, doesn’t mean people actually get them in place.
Estate planning tends to get pushed down the list. It requires people to contemplate uncomfortable circumstances, make decisions that may not feel urgent, gather information, select people for important roles, and often coordinate with an attorney.
The result is a common gap between knowing something needs to be done and actually doing it.
A Simple Way to Get Started with Estate Planning
Estate planning does not have to begin with every decision already made. A practical first step is to gather your existing estate planning documents, review your current beneficiaries, make a basic list of your assets and accounts, and identify any major changes in your family or financial situation since your documents were last prepared.
From there, an estate planning attorney can advise you on which documents should be created or updated, while your financial advisor can help coordinate beneficiary designations, account ownership and other financial details with the broader plan.
Start With the Foundation
Not every family needs a complicated estate plan. Nearly everyone, however, benefits from addressing the basic pieces.
That begins with understanding which documents may be appropriate and what each is intended to accomplish.
Who would manage financial matters during an incapacity? Who can make health care decisions? Who would administer an estate? Are beneficiary designations current? Does the ownership of accounts and other assets align with the estate plan? If a trust has been established, has it actually been funded as intended?
These questions often reveal that estate planning is not a single document or meeting. It involves legal documents, financial accounts, beneficiary designations, asset ownership, and the people who may eventually be asked to act.
Coordination Matters
Financial advisors do not replace an estate planning attorney. Qualified legal counsel handles legal documents and legal advice.
An advisor can, however, help clients identify areas that deserve attention and coordinate the financial pieces of the process.
That might mean helping a client prepare for a meeting with an estate planning attorney, gathering relevant financial information, explaining how accounts are currently titled, reviewing beneficiary designations, or working with the attorney and other professionals as recommendations are implemented.
Sometimes the most valuable contribution is considerably simpler: starting the conversation.
A client may have intended to update a 15-year-old will for several years. A power of attorney may name someone who is no longer the appropriate choice. Beneficiary designations established decades earlier may never have been revisited. Important documents may exist, but family members may not know where to find them.
None of these situations necessarily requires an elaborate solution.
They require attention.
Turning Intentions Into a Plan
Estate planning is easy to postpone because the need for it can feel distant until it suddenly isn’t.
A health event, death, divorce, marriage, birth of a child or grandchild, relocation, or other major life change can quickly expose gaps that previously seemed unimportant.
Addressing the fundamentals before they are needed allows families to make decisions deliberately rather than under pressure.
At Howland and Associates, estate planning is part of a broader financial conversation. We can help clients recognize where additional planning may be appropriate, organize the financial information involved, and coordinate with estate planning attorneys and other professionals to help move the process forward.
If estate planning has been on your to-do list, you don’t have to have every answer before getting started. Howland and Associates can help you organize the financial pieces, identify areas that may need attention, and coordinate with your estate planning attorney and other professionals. Contact Howland and Associates to start the conversation.
Frequently Asked Questions
What documents do I need to get started with estate planning?
The documents you need will depend on your family, finances, and goals, but a basic estate plan often includes a will, durable power of attorney, and health care directives. Some individuals and families may also benefit from a trust. Estate planning also involves reviewing beneficiary designations, account ownership, and how various assets fit into the overall plan. An estate planning attorney can help determine which legal documents are appropriate for your circumstances. Estate-Planning-Sometimes the H…
What information should I gather before meeting with an estate planning attorney?
It can be helpful to gather your existing estate planning documents and relevant financial information, including information about how your accounts are titled and who is named as a beneficiary. You should also consider the people you may want to serve in important roles, such as managing financial matters during incapacity, making health care decisions, or administering your estate. Your financial advisor can help organize financial information and prepare for a productive conversation with your estate planning attorney. Estate-Planning-Sometimes the H…
How often should I review my estate plan?
An estate plan should be reviewed periodically and whenever there is a significant life change, such as a marriage, divorce, birth of a child or grandchild, relocation, major health event, or death in the family. It is also worth reviewing older documents and beneficiary designations to make sure the people you previously selected are still appropriate and that your plan continues to reflect your current circumstances. Estate-Planning-Sometimes the H…
What role can a financial advisor play in estate planning?
A financial advisor does not replace an estate planning attorney or provide legal advice. However, an advisor can help identify financial areas that may need attention, organize relevant information, review account ownership and beneficiary designations, and coordinate with an estate planning attorney and other professionals as the plan is developed and implemented. Sometimes the advisor’s most important role is simply helping begin the conversation and move the process forward.