How to Create an Estate Plan

3 Min. Read

4 Steps to Get Started with Estate Planning

If you’re looking for an estate planning checklist, you came to the right place. Follow these 4 simple steps to start your estate plan and secure your peace of mind:

1. Create a list of your loved ones. The first step in estate planning is to create a list of family members and loved ones who should inherit your assets upon your death. This may include your children, siblings, nieces and nephews, and others especially close to you. It may also include non-profit or charitable organizations you want to gift.

 

2. Take an inventory of your assets and liabilities. After identifying who should inherit your estate, it’s time to inventory the items included. Make a list of your assets, including bank accounts, investments, real estate, life insurance policies, and other valuable property. Document important details like account numbers and approximate value. You should also list your liabilities, such as mortgage payments or other debts owed. This will ensure your family knows of any financial obligations they’ll need to settle.

 

3. Choose the executor of your estate. One of the most important decisions you’ll make in estate planning is choosing the executor of your estate. An estate executor is responsible for managing and distributing your estate plan according to your wishes. The executor will need to gather your assets, pay off any debt owed to creditors, and manage other tasks and paperwork to settle your estate.

 

4. Get your legal documents in order. When your assets and liabilities are cataloged, you may want to meet with a financial advisor and estate planning attorney. These experts can help you get the appropriate legal documents in order, including insurance policy beneficiaries, powers of attorney, healthcare proxies, and organ donor forms. Organizing these documents now will ensure the smooth distribution of your estate when the time comes.

What Information Should You Gather for Estate Planning?

When you’re preparing your estate plan, gathering your important documents and information is important. You’ll want to include personal, financial, and health details. This list is a good start, but you might have other things to add (for example, the name and address of your pet’s vet).

Personal Information

• Full legal name
• Social Security number
• Home address
• Date and place of birth
• Names and addresses of your spouse and children
• Contact details for close friends, family members, doctors, lawyers, and financial advisors
• Birth certificates, death certificates, marriage certificates, divorce papers, citizenship papers, and adoption papers
• Employers and work dates
• Education and military records
• Contact details for religious people, like your pastor or priest
• Any groups or clubs you belong to and awards you’ve earned

Financial Information

• Sources of income (like a pension, IRA, 401(k), interest, etc.)
• Social Security information
• Bank names and account numbers (checking, savings, credit union)
• Credit and debit card numbers
• Investment information (stocks, bonds, property) and stockbrokers’ contact details
• Insurance information (life, long-term care, home, car) with policy numbers and agents’ names and phone numbers
• A copy of your most recent tax return
• Your most up-to-date will with your original signature
• Information on liabilities (what you owe, like mortgage payments and property taxes), to whom, and when payments are due
• The original deed for your home
• Car title and registration
• Location of your safe deposit box and key

Health Information

• List of your current prescription medications (make sure to update this often)
• Living will (this tells doctors what you want if you can’t speak for yourself)
• A durable power of attorney for health care (naming someone you trust to make medical decisions for you if you can’t)
• Copies of any medical orders or forms (like a do-not-resuscitate order)
• Health insurance information with policy numbers and phone numbers

By keeping these details in one place, it will be easier for your loved ones to handle things after you’re gone.

Estate planning isn’t about planning for your death; it’s about planning for your life. Take control of your financial future and ensure your loved ones and your legacy are secure. Learn more about estate planning today and gain peace of mind for tomorrow.