While many think that crafting an estate plan like a will or a trust is a relatively straightforward matter, numerous considerations go into making an effective estate plan to provide for your loved ones. These are some of the things that you need to consider before creating an estate plan:

1. Take an inventory of your assets – Know what you own, where they are located, and who to contact if there is a concern regarding these assets. Know the value of your assets, now and what they could be worth in the future, and know the contents of your safe deposit box. Provide access to someone whom you trust to access your safe deposit box in the event something happens to you.
2. Know who your heirs or next of kin will be – Know who the people are who will inherit from you. If you’re married, know if your spouse will inherit everything. Draft a will or trust and be sure to mention your spouse in the document, even if you are separated or estranged from them. Know what the law provides in your state as it pertains to your spouse inheriting from you through the elective share. If you have children, mention them in the document even if you plan to disinherit any of them. Know who the people are who will inherit from you if your immediate family predeceases you.
3. Know who you would want to take care of your minor children if something should happen to you and the child’s other parent is also deceased. Consider if any other members of your family may require special needs care and determine who will take care of them in your absence.
4. Know who you would want to handle your financial affairs should you become incapacitated. Many times, people get very ill and their bills remain unpaid because their health becomes a priority and no one can handle their bills. Draft a power of attorney naming someone who you trust to manage your finances in such an event.
5. Know who you would want to be able to make health care decisions for you in the event that you are unable to do so. Discuss your wishes with your family ahead of time so that they can make arrangements according to your wishes.
6. Know who you would want to distribute your assets to in the event of your death. Draft a will or a trust and name a person known as a personal representative (executor or successor trustee) to carry out your wishes in these documents.
7. If you set up a trust, make sure to fund it. If the asset that you wish to put in the trust has a title, retitle that asset into the name of the trust and list it on the schedule of assets. If no title is needed, list the asset and do an assignment into the trust.
8. If you are able to list a beneficiary on an asset, you should do so to make sure that your beneficiaries can avoid the probate process. Make a list of life insurance, 401Ks, TOD accounts, etc. so that they are available for your family to know what you have.
9. Review your documents from time to time, particularly if you have had a life-changing event, such as the birth of a child, the death of a family member, or a major purchase.
10. Take an inventory of your liabilities – Know who you owe money to, such as mortgages, credit lines, credit cards, medical bills, etc.
11. If you own a business, decide who you want to take over and run the business or if the business should be dissolved.
12. Speak with your accountant regarding any tax planning concerns, particularly if you plan to give gifts during your lifetime if you have a large estate and want to pass wealth tax-free. Consider gift tax exemptions and custodial accounts for minors.

In order to accomplish your estate planning goals, consider hiring an experienced estate planning attorney who has vast knowledge in this area and who can assist you with these important considerations and in making difficult decisions as you navigate what is essential for your estate planning needs.

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