A Guide to the Estate Planning Process.

Many people avoid doing their estate planning because they are unfamiliar with the process and it seems overwhelming. I’ve done many estate plans, and, I’m here to tell you, that there’s nothing to be worried about. Estate planning can be easy and straight-forward when you know what’s going to happen.

Here are the basic steps to complete your Estate Planning:

Step 1

The first step is simply to commit to taking control and to protecting your family if you become incapacitated or if you pass away.

Step 2

Gather information and choose an estate planning attorney. Many people want to obtain some basic information on estate planning before going further. This website and many others on the internet can be source of answers to your initial questions.

Some think that they can find enough information to do their own estate planning. This approach is almost always a mistake, and can lead to untold problems in the future. A lack of experience can lead to costly errors.

Estate planning is a specialized area of the law. It is important that your estate plan be specially designed by a qualified attorney based on your family situation, and your needs and desires. It may be helpful to involve your accountant or financial planner in this process.

When choosing an estate planning attorney, it is important that you find one who meets the following criteria:

• Experienced
• Trustworthy
• Understandable
• Convenient
• Insured.

Step 3.

Complete the free Confidential Estate Planning Questionnaire. Most attorneys request that you provide some basic information at the start of the process. My free Confidential Questionnaire can be obtained here.

The Confidential Questionnaire acts as a road map, leading to the information necessary to develop your Estate Plan. It includes questions regarding your family members, your prior estate planning and responsibilities, the people you want in positions of trust, a general list of your property and their values, your general estate planning needs, and any special factors which need to be taken into account.

Step 4.

Meet with your estate planning attorney. Your initial meeting with your attorney will be an involved discussion regarding your answers in the Confidential Questionnaire, and an in-depth discussion about your specific needs. Before the meeting is over, your attorney will discuss a proposed estate plan with you, and will explain how it will address your concerns. Once the scope of your estate planning is agreed to, your attorney can provide a quote for the necessary services. Most attorneys require that a deposit be paid at this time and that an engagement agreement be signed.

Step 5.

Prepare the draft estate planning documents. In this step, all the work is done by your attorney. Based on your initial meeting, a complete set of draft documents will be prepared which meet your needs. The documents will be sent to you, along with a letter which summarizes the provisions, for your review.

Step 6

Review the draft documents. You should carefully review and understand the provisions of your proposed estate planning documents. You should make sure that they express your desires and meet your needs. You must confirm that there are no mistakes in the names and addresses in the documents.

Step 7

Finalize your estate planning documents. After you’ve reviewed your documents, you must discuss your questions and concerns with your attorney. If your questions are relatively easy, this can be done with a phone call. If the issues are more involved, then another meeting with your attorney is probably needed. Steps 5-7 must be repeated until your documents are exactly right.

Step 8

Sign your estate planning documents. A final meeting is needed with your attorney to sign your documents. Most people do not understand that there are specific rules which must be followed when signing your estate planning documents. A procedural mistake in the “signing ceremony” may invalidate your Will.

Step 9

What!? There are still more steps?!? Yes, although you’ve gone most of the way, there is still a little more to do. Almost all estate plans will require you to modify your beneficiary designations and the ownership of certain assets.

It is important that all your assets be co-ordinated with your estate plan. Most of the time, in order to maintain the allocations among your legatees, you may need to make your estate or your trust the beneficiary of your life insurance, brokerage accounts and other payable on death accounts. While there are certain advantages to having your retirements payable to your spouse, your tax planning or gift allocations may modify that decision.

If your plan includes a Revocable Trust, you should transfer ownership of your major assets to the then-acting trustee of your Trust. This is called “funding” your Trust.

Step 10

Be alert for the need to update your estate plan. Your Will, Trust and other documents are not meant to be carved in stone. Changes in your family, your property values, and your relationships may require corresponding changes in your estate plan. Changes in the tax law can also require changes in your estate plan if you wish to minimize the effect of estate and gift taxes.

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