Top 5 Ways To Make Estate Planning Less Painful Than Death

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Despite feeling like you find yourself more and more in dystopian surroundings, taking the right steps now with your financial planning can ease the worry of punching that final time clock. For some reason, the two certainties in life, also known as death and taxes, come with a myriad of paperwork.

Enter estate planning, a critical piece of the puzzle that is your financial situation. Simply put, this will include legal documents such as your last will and testament, power of attorney in case you become incapacitated, medical directives, a plan for how kids and dependents should be cared for, business succession and much more.

If you want your loved ones to be cared for after your passing, and be less annoyed than they are sad, then taking some important steps now to make sure your assets are distributed properly is a great idea. Here are the top five ways to make estate planning easier and a little less complicated than figuring out the afterlife.

No. 5: Leave a Paper Trail Straight to the Grave

Creating an inventoried list of assets, real estate, savings accounts, retirement accounts, insurance policies, contact information for any financial advisors you work with and other helpful documents will be a great way to remain fondly remembered. Think about when you can’t remember your password, not try to picture everyone in your life trying to figure it out. It’s best just to give them the upper hand. 

Keep your list and documents in a secure place — such as in a home safe or safety deposit box — until you go to the great beyond, though, just in case. Then you can leave instructions that let family members and executors know where they can access the information on your brokerage accounts, bank accounts, credit card statements, digital assets and other important personal information if something happens to you.

No. 4: Remember, If You Fail To Plan Your Finances, Your Finances Plan To Fail

A power of attorney allows you to name someone you trust to make financial and legal decisions for you if you cannot do so yourself, so make sure that if you are not picking your favorite child, you’re at least picking the most responsible one. A durable medical power of attorney, or healthcare power of attorney, also lets you name someone to make medical decisions and adjustments to your end-of-life care plan for you if you’re unable to make them yourself.

Make sure you draft a will or trust and be sure to check with your state to find out if the living will and healthcare power of attorney are combined into a single advance healthcare directive document. This can be in the form of a living will that outlines the medical care you would want if you become unable to make your own healthcare decisions. A living trust allows you to transfer property to your heirs without the probate process, which can be lengthy, expensive and public.

No 3: Put the Fun in Funeral

Estate planning documents can be a drag, but have you ever tried planning your own funeral? Though not exactly short-term goals, including your final funeral and burial wishes in your will helps specify what sort of memorial service you want and whether you want to be buried or cremated.

Be sure that your friends and family are aware of your wishes, and give them copies of this document or tell them where to find it. Fun, right? Think of it more as hosting your last party the right way. 

No. 2: Eeny Meeny Miny … Beneficiary

True, you never want to pick sides or let the world know you do, in fact, have a favorite, but make sure you specify who should receive your assets when you die. Give clear directives on where all your property and money go and how it will be allocated to such beneficiaries as a surviving spouse or minor children. Also, include who you would want to raise your children should both you and your partner pass. 

Don’t forget to do this for your pet as well, as it is an important decision and one you’ll want to discuss with the person you feel is the best fit. You could also leave your dog and cat everything if you really want to make some headlines during your wake.

No. 1: Don’t Fight the Law and Let Death Win

And now, the number one way to make estate planning less painful than death is … learn your state’s estate tax laws and review your plan annually. Though most people won’t have to worry about paying estate taxes, estate planning is often a way to minimize estate, inheritance or gift taxes. Make sure you familiarize yourself with what will apply to your assets or work with a financial advisor to get you covered. 

Creating a comprehensive estate plan is a major undertaking and one that most people are happy to finish — albeit hopefully ahead of schedule. However, an estate plan isn’t something you work on once and never look at again. As life circumstances and laws change, it’s important to reassess your plan at least once each year to ensure it will still work.

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