We advisors like our analogies. When we talk about retirement planning, we will sometimes frame it as “planning a vacation that you don’t know how long will last or how much it will cost”. In the same way, estate planning is like trying to tell others your final wishes when you can no longer tell them.
Estate planning may sound like something only reserved for the wealthy, but the truth is, it’s an essential step for anyone who wants to protect their loved ones and their legacy. Whether you have a modest estate or significant assets, creating a clear estate planning checklist ensures that your wishes are honored, your family is supported, and confusion is avoided during already difficult times.
Instead of waiting for disaster, this checklist aims to keep you well prepared for the future so you can help others steward the assets way you would want to.
What is Estate Planning?
Estate planning is a smart move for those either planning for the end of life or possible incapacitation. You’ll have the opportunity to make decisions for your loved ones before you’re unable to. These decisions can look like drafting wills or trusts and alleviating any ambiguity you or your loved ones could have. But the best way to set your estate planning up for success is by consulting with a financial advisor.
Below is a practical estate planning checklist to guide you through the process.
1. Assess Your Inventory
This first step can set you up for successful planning: Start by taking stock of everything you own. This includes your home, vehicles, savings and investment accounts, retirement plans, business interests, and personal possessions of value. Having a clear inventory gives you a strong foundation to begin your plan.
2. Compile Legal Documents
At the heart of any estate plan are your legal documents. These typically include the following:
- Will
- Living Trust
- Financial Power of Attorney
- Medical Power of Attorney
- Healthcare Directive
Depending on your situation, you may need additional documents. Each plays a role in ensuring your assets are distributed according to your wishes and that decisions can be made if you’re unable to do so yourself.
3. Decide on Beneficiaries
Naming beneficiaries on your accounts—like retirement plans and insurance policies—is critical. These designations are considered will substitutes. Beneficiaries typically override your will, so make sure they’re current and reflect your intentions. The last thing you want is any kind of confusion for your beneficiaries, so clarity is key.
4. Appoint Key Individuals
You’ll need to designate trusted individuals for specific roles, such as a guardian for your children, an executor for your will, or a trustee to manage assets on behalf of your beneficiaries. Choose people who are not only capable but also willing to take on the responsibility.
5. Securely Store Documents
Once your documents are in place, store them in a secure but accessible location. This could be a fireproof safe at home, a trusted attorney, or a safety deposit box at your bank. You should also consider storing a copy electronically in case them being physically destroyed. Be sure that your loved ones know where to find passwords for the electronic copies and where to find the hard copies in case of an emergency.
6. Review and Update Regularly
Life changes—marriages, births, divorces, or new assets—should trigger a review of your estate plan. Set a reminder to revisit your plan at least every few years or whenever a major life event occurs. If you don’t, important pieces of information will be lost, or assets that should’ve been updated will no longer make sense. This could leave your loved ones in a state of confusion during an already difficult time.
7. Consult a Financial Advisor
One of the most overlooked yet valuable steps in an estate planning checklist is speaking with a financial advisor. Why?
A financial advisor can:
- Evaluate your overall financial picture and long-term goals
- Create a tailored estate strategy that aligns with your values and priorities
- Recommend and help implement tools such as trusts, charitable giving strategies, or tax-efficient plans
- Collaborate with your attorney or CPA to ensure every angle is covered
With the right advisor, estate planning becomes less about paperwork and more about peace of mind.
Start Planning for the Future Today
Don’t leave your legacy to chance. Take control of your financial future and your family’s well-being with this comprehensive estate planning checklist.
Start your estate plan with guidance from Evergreen Financial Group. Schedule a call with us today!
