Estate planning involves creating legal documents that state your wishes about asset distribution, financial decisions, and medical care if you become unable to communicate. Each estate plan is unique, tailored to your specific situation. Working with an estate planning attorney ensures your plan fits your needs.
1. Inventory Your Assets
Before meeting your attorney, list all your significant assets to understand what you own. Categorize them as tangible and intangible assets.
Tangible assets include:
- Real estate (residential and commercial)
- Vehicles (cars, boats, motorcycles)
- Collectibles (artwork, antiques, coins)
- Jewelry and valuables
Intangible assets include:
- Bank accounts (checking, savings)
- Investments (stocks, bonds, mutual funds)
- Retirement plans (401(k), IRA)
- Life insurance policies
- Business ownership shares
Assign a value to each asset, either by appraisal or perceived worth to heirs, to facilitate fair distribution.
2. Determine Your Family’s Needs
Estate planning also addresses your family’s future care:
- Life Insurance: Ensure your dependents have financial support by assessing your life insurance coverage with a financial advisor.
- Guardianship: Name a guardian and backup for minor children, and express your values about their upbringing, education, and religion.
3. Put Your Wishes in Writing
Legal documents make your estate plan official. These must be signed according to state laws, often requiring notarization and witnesses.
Common estate planning documents include:
| Document | Description |
|---|---|
| Will | Names an executor, designates asset distribution, appoints guardians for minors, and details funeral plans. |
| Trust | Manages assets and provides protection benefits; useful for complex estates. |
| Durable Financial Power of Attorney | Authorizes a trusted person to manage finances if you become incapacitated. |
| Advance Health Care Directive | Specifies your medical care preferences and appoints a health care decision-maker. |
| HIPAA Authorization | Allows specified individuals to access your medical information. |
4. Review and Update Your Estate Plan
Life changes like marriage, divorce, births, or deaths may require updates. Review your plan every few years or after significant events to keep it current and valid.
Summary
Estate planning ensures your wishes are followed and your loved ones are cared for. Collaborate with an estate planning attorney to build a plan tailored to your needs and compliant with your state’s laws.
Contact Us
We have offices in Sherwood, Searcy, Little Rock, and Benton. If you’d like to discuss your specific situation, please contact us at 501-834-2070 to schedule a consultation. We look forward to helping you.
FAQs
What is the estate planning process?
Estate planning is creating legal documents to specify your wishes for asset distribution, financial decisions, and medical care if you cannot communicate.
What assets should I inventory for estate planning?
List both tangible assets like real estate, vehicles, and collectibles, and intangible assets like bank accounts, investments, and retirement plans.