Organize Your Legacy: A 5-Step Guide to Estate Planning

As we begin the new year, there’s no better time to get your affairs in order and create an estate plan. Admittedly, estate planning might not sound like fun (no one wants to do it and no one wants to think about it), but it’s essential to protecting your assets and your loved ones.

So where to start? Here’s a straightforward 5-step guide to help you create a comprehensive estate plan that protects your legacy and gives you peace of mind.

Step 1: Take Inventory of Your Assets

Create a detailed list of everything you own. This includes:

Physical assets* (real estate, vehicles, jewelry, artwork, and other valuable possessions)
Financial assets (bank accounts, investments, retirement accounts, life insurance policies)
Digital assets (cryptocurrency, online accounts, digital photos, social media accounts)
Business assets (if applicable)

*Our team can help you with creating a digital home inventory!

Step 2: Organize Important Documents

Gather and organize all essential paperwork in one central location. Key documents include:

Birth certificate and marriage license
Property deeds and vehicle titles
Insurance policies
Tax returns
Bank and investment account statements
Will, trust, power of attorney and beneficiary information

Pro tip: Consider using a fireproof safe or safety deposit box to store original documents, and maintain digital copies as a backup.

3. Designate Your Beneficiaries and Define Your Goals

Decide who will inherit your assets, including specific items for certain people or charities:

Create a will or trust.
Designate guardians for minor children or dependents.
Document your wishes for pet care (if applicable).
Name beneficiaries on financial accounts such as retirement accounts and life insurance policies.

Pro tip: Consider creating a trust to help avoid probate and simplify the process for your beneficiaries.

Step 4: Establish Your Healthcare Directives

Prepare for potential medical situations:

Create an advance healthcare directive.
Document your end-of-life care preferences.
Prepare a HIPAA authorization form.
Assign a financial power of attorney and a healthcare power of attorney to act on your behalf if you become incapacitated.

Pro Tip: Work with an estate attorney to draft these directives. It can be done at the same time you create a will or trust.

Step 5: Communicate Your Plan

Share your estate plan with key individuals:

Inform your executor of their responsibilities.
Tell loved ones where to find important documents.
Provide your estate attorney with copies of all relevant documents.

Estate planning is truly for everyone, as it ensures your wishes are honored and your loved ones are protected. While these five steps provide a solid foundation, consider consulting with legal and financial professionals for personalized advice based on your specific situation. Also, be sure to review and update your estate plan annually or after major life changes.

Need help getting started? We can assist you in creating a comprehensive inventory of your assets, digitizing your important documents, and/or creating a physical or digital legacy binder. Please feel free to reach out for a free consultation.

Want more inspiration for your New Year’s resolution? Whether organizing your home or your life, my blogs and videos are packed with tips for making space for what you love most. Check out two of my favorite ways for kicking off the new year:

With a few simple habits (and some extra luck!), you’re bound for success in the year ahead.

Have a clever organizing solution? I’d love to hear about it! Drop me a line on Instagram or Facebook.