Basic Estate Planning Strategies

Estate planning should be viewed as an ongoing process, as your estate plan should reflect both issues directly related to your personal situation as well as taking into considerations changes in tax laws and government regulations.  There are many different strategies depending on your financial situation (size of your estate, complexity, etc.).  As a starting point, most estate plans should begin with the following estate plan “basics”:

• A testamentary will
• A living will
• Revocable Trust
• Alternative Methods of Transferring Property
• A durable power of attorney
• Naming a guardian for minor children
• A health care proxy
• Updated Beneficiary Designation forms
• Life insurance for final expenses

Formal Testamentary Will

The simplest form of estate planning is a will, a legal document that transfers what you own to your beneficiaries upon your death.  If you die without a will, state statutes and a probate judge will dictate who receives your assets.  The intestate succession statutes, which set forth who will receive property, generally protect immediate family members.  State statutes vary on what property passes to whom upon the death of an individual, but spouses and children are typically the priority heirs.  Individuals uncomfortable with the heirs specified in their state’s statutes should execute a will to set forth an acceptable plan for the distribution of their assets.  Any person at least 18 years old and of sound mind may lawfully execute a will.