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The saying goes that the cobbler’s children have no shoes. But my own experience in creating estate and probate planning products after the departure of my father over a decade ago he ensured that I practice what I preach.
Knowing how important it is to formalize your wishes and information, I recently updated my own estate plan. Here’s why you should update yours too — or apply one if you haven’t already.
Whether you have many or few assets, many dependents or none, or complex or simple affairs, putting together an estate plan is critical to making sure your wishes are met and that your loved ones are not overwhelmed by the process. Being organized now helps save you time, money and grief of loved ones when they need it most.
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So what should you set up or revisit?
It is also important to draw up a will and, if possible, involve your family in the process. (iStock)
First, make sure you have an up-to-date will. This will legally set out your wishes and make the process easier for your loved ones. From clarity about what happens to your property and personal belongings to even who gets your loyalty points, thinking ahead helps your loved ones fulfill your wishes while reducing arguments between family and friends.
My suggestion is — if you have a family dynamic that allows for it — involve your loved ones in the process. In this way, family members can express their concerns and thoughts while you’re still alive and they feel like they are part of the process. In addition, some of the decisions may directly affect them, for example if family members want to be buried close to each other and have to provide burial plots.
Or maybe some family members are more comfortable playing certain roles, while other members don’t want the responsibility. An open conversation can help resolve this now that emotions are not overwhelming.
While there are online options for getting a will quickly, and it’s certainly better than not having a will at all, you may want to contact an estate planning attorney who can explain the state’s estate rules. Attorneys can often offer strategies or recommendations for information on tax planning and efficiency. They will also make sure you have the proper witnesses and notarization as required by your state.
My estate plan also includes powers of attorney for health care decisions and personal property decisions. A power of attorney gives someone the ability to make a decision on your behalf if you are unable to make it yourself, for example due to an accident or other mental incapacity.
In addition to deciding who plays that role, it sets the parameters for that person to follow. Your health care power of attorney can include instructions about organ donation and burial versus cremation, among other decisions about health and final wishes.
While making a will and power of attorney are great first steps, they won’t cover all of your wishes and information. Think about your digital assets. What do you want your loved ones to have access to from your digital files, and what might you not want anyone to see? Do you want a message left on your social media account to alert friends who might not hear that something is happening to you? This is something you can put in your Will directly or put in a designated place within your estate planning and wishes kit.
And as you put together this plan and related instructions, make sure your loved ones can find everything! Neither a will nor a power of attorney that no one can find helps! I previously written of Aretha Franklin’s will saga, where no will has been found, several different copies have then surfaced, including one found in her couch cushions. The ensuing legal battle took five years to resolve!
My suggestion is — if you have a family dynamic that allows for it — involve your loved ones in the process. In this way, family members can express their concerns and thoughts while you are still alive and feel like they are part of the process. In addition, some of the decisions may directly affect them, for example if family members want to be buried close to each other and have to provide burial plots.
You want to make it easier for your loved ones to find your wishes, data and documents. Consider doing a full estate planning and wishes kit, like mine Future File a kit or similar kit that you put together that contains all the information plus anything physical that a loved one or executor would need to access in one place.
Copies of the will and power of attorney should be left there. If you don’t want to physically put them in the kit, you can leave instructions on how to access them instead.
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I hear from people that things like safe keys are often a big challenge to find if they are not organized in one place, like an heirloom kit. Sometimes a loved one may not know how to contact your estate planning attorney, accountant, financial advisor, bank or other key service providers. This information should also be included in your kit as part of a comprehensive estate plan.
An added benefit of having a kit is that you have one thing to grab in the event of an emergency, be it an accident, natural disaster or something else.
How should you get started with an estate plan or update? Consider getting a kit like Future File that asks questions and helps you think through your wishes. When prompted, take this information to professional service providers, starting with an estate planning attorney, to get your legal documents in order. Finally, make sure your loved ones can access the information you can compile.
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Although I created my estate plan and legacy equipment some time ago, circumstances have changed and I felt a great sense of relief after completing the update.
Don’t procrastinate—no one knows what tomorrow may bring, as we are constantly reminded. It will give you peace of mind knowing it’s taken care of and save your loved ones a lifetime of grief, as well as tons of time and money in their time of need.
