One of the best ways to keep your family safe and to provide for your loved ones, in the long run, is to create a comprehensive estate plan. This plan is much more than a will. It outlines exactly how you want your entire estate managed after you pass away or become incapacitated and unable to make decisions on your own. But if you’re new to the process, figuring out the basics is the best place to start. Here’s what your Illinois estate planning attorney wants you to know.
What Is Estate Planning?
Estate planning is the process of creating a detailed set of instructions for how you want your estate handled. This typically involves the following:
- Creating a will to explain your last wishes
- Appointing guardians for your children or pets
- Identifying the individuals you want to inherit your assets
- Appointing power of attorney to someone you trust to handle your affairs
- Establishing trusts to provide for your loved ones
- And other similar tasks
Everyone’s estate plan will be unique and based on their financial situation and both short- and long-term goals.
Understanding the Estate Planning Process
Though every estate plan is unique, they should all follow the same general process. Here’s a quick overview of what you can expect.
- Evaluate your current situation. Look at your finances, your assets, and other important accounts. Your estate plan should cover everything.
- Meet with an Illinois estate planning attorney. Let them guide you through the process from making a will to identifying who you want to inherit each part of your estate when you pass away.
- Update the designated beneficiaries on your life insurance policies, retirement plans, and other key accounts.
- Outline your preferred funeral arrangements if you have them. If not, you can appoint someone you trust to handle your funeral for you.
- Appoint a power of attorney to manage your finances if you’re unable to do so.
- Appoint a medical power of attorney to make medical decisions on your behalf if you’re unable to make them yourself.
- Review your estate plan at least once a year and make updates as needed.
This is far from an exhaustive list of the steps you’ll need to take. Remember, your estate plan will be unique to your situation, so the exact steps you’ll need to take to create your plan may vary.
Things to Keep in Mind
Building an estate plan can feel like a daunting task. It involves taking a long, hard look at your finances and your final wishes. While it can be difficult, there are a few things you’ll want to keep in mind that may make the process easier.
Your Plan Will Change Over Time
Your estate plan isn’t something you can create and then forget about. It should change as your situation changes. For example, if you acquire new assets, you’ll want to update your plan to include those assets. This is why most Illinois estate planning attorneys recommend reviewing your plan at least once a year.
This may mean more work, but it also means it’s okay if you didn’t get your plan completely right the first time. You always have the chance to fix errors or areas of concern.
It’s Never Too Soon to Create a Plan
Contrary to popular belief, estate planning isn’t something relegated to individuals approaching retirement age. It can and should be done for everyone who has assets that they wish to pass on to someone else. 16-year-olds who provide for their families or help them make ends meet could benefit from at least a few common estate planning efforts. And individuals who are just now entering the workforce could use a plan to protect their interests.
Speak With an Illinois Estate Planning Attorney
If you’re ready to create a comprehensive estate plan designed to ensure that your wishes are honored, don’t wait. Contact Legacy and Life today. Our team will help you evaluate your current plan or create one from the ground up.