When you decide to create your estate plan, like many projects, assembling a trusted team can be your best approach. Most individuals might think of estate planning as something you do with your estate planning attorney, and it can be, but consider the following key roles others can play to ensure your plan meets your unique goals while protecting your hard-earned assets and loved ones.
1 Team Leader (Co-Leaders)
In a team approach, you might consider your estate planning attorney the team leader, though in my practice, I consider myself a co-leader with my clients. I provide the experience, legal knowledge, and guidance while my client shares their goals, so together, we move forward. That includes drafting wills, trusts, healthcare directives, and powers of attorney. We will cover asset protection strategies and how to minimize probate when appropriate. And, I provide a complimentary estate plan review every three years for my clients to ensure their plans are updated as needed.
2 Your Trustee (if you have a trust)
A trustee manages trust assets according to your instructions. I advise my clients to choose an individual who is trustworthy, financially responsible, organized, and willing to take on the role. The individual must understand their responsibilities because sometimes, depending on the situation, they can be a lot, including managing investments, distributing assets to beneficiaries, paying bills and taxes, and keeping accurate records. Always make sure you explain this to anyone you might consider for the role and ensure they are really willing; otherwise, things could go sideways if they don’t fulfill their obligations.
3 Your Executor (personal representative)
Another key position on the team is your executor. This individual administers your probate estate after your death. Their responsibilities often include filing your will with probate court, paying debts and final expenses, and distributing inheritances. Again, important to appoint someone trustworthy who is organized and good with details.
4 Your Healthcare Power of Attorney
The individual you choose to make medical decisions on your behalf if you are unable is increasingly important in the healthcare environment today. It used to be a close relative, a spouse, or an adult child showing up at the hospital in an emergency who was assumed to have your best interests at heart and could make critical medical decisions for you. More often than not now, medical facilities want a legal document that lets them know the individual you selected to speak for you. Your medical team will speak with this person to ask for healthcare decisions consistent with your wishes. You need to choose someone who will remain calm in an emergency and advocate based on your preferences.
5 Your Financial Power of Attorney
Everyone should have a financial power of attorney, not only to step in to manage your financial affairs if you become incapacitated but also if, for example, you are out of the country and unable to be present for a financial transaction, such as closing on a home. This individual’s responsibilities cover things like paying bills, managing investments, working with your banks, filing your taxes and, as mentioned, signing legal documents on your behalf. Clearly, the person you choose for this role must be someone of the highest integrity with a solid understanding of
finances.
6 A Guardian for Your Minor Children
If you have children under 18, naming a guardian may be one of the most important decisions in your estate plan. If you don’t and, for example, tragedy strikes and both you and your spouse are killed in an auto accident, who will take care of your children? If you do not have legally executed documents appointing a guardian to care for them, the state can step in, and who they choose may not be who you would have chosen. Choose a guardian who shares your parenting values, is willing to serve, and has the emotional and financial stability to provide a good home environment for your kids. There are other factors to consider, such as geographic location, religious beliefs, and more. It must be a very well-considered decision.
In addition to the above, many clients add their financial advisor, insurance professional, and CPA to their team to ensure investments and retirement plans align with their estate plan. And of course, certain members of your family might be on your team. At minimum, keeping key members informed about your plan and subsequent changes can reduce confusion and conflict later.
If this team approach sounds complicated, rest assured that, for most clients, it is not. When we meet, they generally have individuals already in mind for the team roles; it is usually just a matter of confirming with those people if they are willing to take on the responsibilities. It is a good idea to have a back-up person in mind, just in case. I want to invite you to call me (or schedule an appointment directly from my website) so we can assemble your estate plan. Remember, this is one of the most loving acts you can do for your family: to have your affairs in order if something happens to you. My phone number is: 513-399-7526. My website is: www.davidlefton.com.