The ultra-wealthy aren’t the only ones who should prioritize estate planning. If you own a home, have savings, or want to decide how your assets will be handled and distributed, an estate plan is essential. An intentional estate plan can help protect what you’ve built, provide clarity for your loved ones, and help ensure your wishes are carried out if something happens to you.
Creating an estate plan may seem overwhelming. Here are some key components to focus on:
Start with a Will
A will is one of the most foundational estate planning documents. It outlines how you want your assets distributed after your death and enables you to name guardians for minors.
Should you pass without a will in place, state interstate succession laws will determine how your assets are divided, which may not reflect your intentions. Having a will in place can help ensure your wishes are spelled out and can reduce potential conflicts among family members.
Understand that a will alone may not cover everything. Additional tools may need to be incorporated into your estate plan.
Understand the Role of Trusts
Trusts can provide greater control over how and when your assets are distributed—and they can be helpful if you have significant assets or complex family dynamics.
Trusts can potentially help:
- avoid probate
- maintain privacy
- manage assets for beneficiaries over time
- protect assets for younger beneficiaries
- set conditions for distributions
- provide ongoing financial support for loved ones
While not everyone needs a trust, understanding their function and potential benefits—and working with an advisor—can help you determine whether one fits into your broader financial plan.
Plan for Incapacity
Estate planning helps you plan for the future after your death and situations where you may be unable to make decisions during your lifetime.
With documents such as durable power of attorney and a healthcare directive, you can appoint a trusted individual to make financial decisions on your behalf if you become incapacitated. Without these documents, your family and loved ones may need to go through a lengthy and potentially expensive legal process to gain authority to make decisions on your behalf.
Including these protections in your estate plan can help provide reassurance for you and your family.
Consistently Update Beneficiary Designations
Many financial accounts, including retirement plans, life insurance policies, and certain investment accounts, enable you to directly name beneficiaries—and these designations typically override instructions in a will.
To help ensure your assets go to the people you intend, it’s important to regularly review beneficiary designations, especially after major life events like the birth of a child, marriage, divorce, or the death of a loved one.
Regularly Review Your Plan
Estate planning isn’t a one-and-done endeavor. Your financial situation, family structure, and long-term goals will likely evolve over time.
Periodically reviewing your estate plan—every few years or after major life or financial changes—can help ensure it remains aligned with your current wishes.
The Value of Professional Guidance
Estate planning involves coordinating legal, financial, and tax considerations. Working with experienced professionals can help you identify potential gaps, evaluate available strategies, and ensure your plan reflects your full financial picture.
Taking a proactive approach can help protect your assets, simplify the process for loved ones, and support the legacy you want to leave behind.
Axis Wealth Partners works closely with your other financial professionals, including your CPA and estate attorney, to help ensure your plan is coordinated and aligns with your overall financial strategy. Schedule a consultation today.
Commentary provided in collaboration with Symmetry Partners, LLC. Symmetry Partners and Axis Wealth Partners are unaffiliated entities. Symmetry Partners is an investment advisory firm registered with the Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Investing in securities involves risks, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Content is provided for informational purposes only and is not advice. Neither Symmetry partners nor Axis Wealth Partners provides tax or legal advice. Discuss all strategies mentioned with a qualified professional prior to implementation.