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Preserve your family legacy this summer

The warm summer months often bring families together, with beach trips, backyard barbecues, and quality time spent with loved ones. As you gather with your children and grandchildren this summer, take a moment to consider how you can best protect and provide for them in the years ahead through proper estate planning. Having an estate plan in place is one of the greatest gifts you can give your family. To help get your estate plan going, here are 6 steps you might consider:

1. Make a list of your possessions

You may wonder if you have enough to justify an estate plan. Once you review your finances, you might be surprised by all the tangible and intangible assets you have.

Your tangible assets may include:

Homes, land, or other real estate
Cars, motorcycles, boats, or other vehicles
Jewelry
Collectibles such as coins, art, antiques, or trading cards

Your intangible assets may include:

Checking, savings, and certificate of deposit accounts
Life insurance policies with cash value
Retirement plans such as 401(k)/403(b)/457(b) plans and IRAs
Stocks, bonds, and mutual funds

2. Review your beneficiaries

Retirement plans and insurance products usually have beneficiary designations that you need to keep track and update as needed. Those beneficiary designations can outweigh what’s in a will. Keeping your beneficiaries up to date will help ensure the right people get what you intend after you pass. People often forget the beneficiaries they named on policies or accounts established many years ago. You shouldn’t always assume that your designated beneficiaries are up to date. Make sure you review this every time a big life event takes place, ensuring that your payouts go to the right people when the time comes.

When naming your beneficiaries, you’ll want to designate the percentage of your account assets each beneficiary will receive. Also, make sure to name contingent beneficiaries. These secondary beneficiaries are next in line if your primary beneficiary dies before you do and you forgot to update your primary beneficiary designation(s). If you leave anything blank, an account may go through the probate process and be distributed based on the state’s rules. It’s a wise idea to keep a list of all your named beneficiaries along with the account and/or policy providers’ names and account numbers. Establishing and updating such a list is an important component of an estate plan list and makes it easy for your heirs to locate your assets after you pass on.

3. Protect what you have

Once you have determined what’s in your estate, think about ways to protect your family and assets after you’re gone. A suitable amount of life insurance may be important if you’re married and your current lifestyle and/or monthly mortgage payment require dual incomes. Life insurance may also be important if you have college tuition bills or a child with special needs. You also may want to document your wishes for your minor children’s care. Don’t assume that certain family members will share your child-raising ideas and goals. Additionally, don’t assume a judge will abide by your wishes if you have not documented them and the issue goes to court.

4. Establish your directives

You’ve spent decades working hard to build your wealth and assets to provide for your loved ones. Without an estate plan, however, you leave it up to the state to decide what happens to your legacy. By creating a will and potentially a trust, you dictate how your money, property, and cherished possessions are divided among your loved ones according to your wishes. An estate plan allows you to make provisions for your children, grandchildren, and any dependents with special needs. You can nominate guardians, create trusts to manage inheritance, and ensure your family is taken care of exactly how you intend. This provides tremendous relief in knowing their future is secure.

5. Enlist the help of a professional

If your estate is small and your wishes are simple, an online or packaged will-writing program may be sufficient for your needs. If your estate is more complicated or you have any doubts about the process, consult an estate attorney and possibly a tax advisor.

6. Plan on adjustments

Revisit your estate plan when your personal and financial circumstances change. This may include marriage, divorce, birth of a child, loss of a loved one, a new job, or moving to a new state.