You can’t read or watch the news without seeing at least one headline about an unexpected death from some tragic event. Despite seeing what could happen, most people still delay getting their estate in order to protect their own families from the aftermath of unexpected death. A recent AARP poll revealed that most Americans are aware there’s a need for estate planning. However, only half of those surveyed had actually taken any estate planning actions.
Don’t make the mistake of assuming you don’t need an estate plan because you’re healthy, young, or only have a small or simple estate. The reality is that death statistics show disaster can strike any of us at any time. So no matter your wealth, age, or presumed well-being, you must prepare your family for the worst case scenario and leave them with a plan of action.
Simply put, your estate plan is a plan of action that will address what happens to your family after you’re deceased. You can do your own planning, but working with a professional estate or financial planner is recommended to best ensure a comprehensive plan. For related guidance, see Planning for Long-Term Care and Estate Management and Estate Planning and Disaster Preparedness. If you prefer professional help, talk to an agent.
Whether you go it alone or work with a planner, one of the most valuable aspects of estate planning is that you’ll get to thoroughly think things out. As you make your plan, keep these six points in mind to make implementation as smooth as possible for your survivors:
Six points to make implementation as smooth as possible
- Communication. A plan that only you’re aware of does little good to your survivors. The last thing you want to leave your family with is fear of the unknown when they’re already reeling from the shock and grief of your unexpected loss. Ensure your family knows the name and contact numbers for advisers; what the estate plan is; what your assets are, where they’re held, and the what, who, and why of your will’s contents.
- Organization. Prepare a to-do list for your surviving family members, including what they should do the days, weeks, and months after your death. For example, you might instruct your heirs to contact your life insurance company in the days following your death. This will be of particular importance if your estate is mainly comprised of illiquid assets. Other common points are related to burial arrangements and debt payoffs.
- Responsibility. You’ve organized, and now you want to name a responsible party to carry out each task. You’ll want to have a trusted adviser that your survivors can turn to for assistance. This person doesn’t necessarily have to be the executor of your will, but should be someone that’s equally trustworthy and that can be a calming voice for your distraught family. Additionally, you’ll need to establish legal successor guardians for any minor children. Don’t make the mistake of assuming a close relative will automatically be accepting of this responsibility. Make sure the successor guardians are aware you’re naming them, are willing participants, and are prepared for their potential new role.
- Awareness. It will be vital that the all parties involved in your estate planning know where to get the information they’ll need. For example, your successor guardians will need to know who to get funds from for your children. Make sure that your estate planner, adviser, and/or attorney have signed copies of your estate documents. That said, your family needs to be aware of where your copy of important documents, to-do list, and important contact numbers will be stored. You can create an emergency file for these documents and/or instructions on how to locate and access sensitive documents located elsewhere.
- Explanation. Explaining the intent of your plan can help prevent your heirs from resenting or misunderstanding contents of your estate plan that they didn’t know about. Most experts recommend getting your family involved in your estate planning. This may be particularly difficult for those with adult children, but just remember that your goal here is to have an open dialogue about what you’re doing and why you’re doing it, not a democratic debate.
- Review. Your priorities, goals, and wishes may change as life continues with you in it. Periodically review your estate plan with your planner to make any necessary changes.
Death certainly isn’t a pleasant thought. However, the unpleasant repercussions your family could face if you become a headline without an estate plan is a far worse thought.
Frequently Asked Questions
What happens if I die without an estate plan?
If you die without an estate plan, state laws typically determine how your assets are distributed and who cares for minor children; that process can be slower and less targeted than a plan you create yourself.
How often should I review my estate plan?
Review your estate plan after major life events—marriage, divorce, birth, death in the family, or significant financial changes—and at least every few years.
Should I tell my family about the details of my estate plan?
Yes. Clear communication reduces confusion and conflict after your death and helps your family carry out your wishes more effectively.
Do I need a lawyer to make a valid will?
While you can create a will without a lawyer, working with an attorney or qualified planner can help ensure documents meet legal requirements and match your intentions.