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How to Start Estate Planning? Estate Planning Checklist

how to start estate planning estate planning checklist

Knowing how to start estate planning and when to start estate planning is essential for securing your financial future and protecting your loved ones. While it's easy to put off estate planning, the truth is that it is a critical aspect of responsible financial management that should not be delayed.

The ideal time to start estate planning is now, regardless of your age or financial situation. Life is unpredictable, and unexpected events can occur at any time. By proactively planning for the future, you can ensure that your assets are protected and your wishes are carried out in the event of your incapacity or death.

Starting estate planning early offers several advantages. It provides ample time to carefully consider your goals and intentions, identify potential challenges, and develop strategies to address them. Additionally, early estate planning allows you to take advantage of various planning opportunities, such as tax-saving strategies and asset protection measures, that may not be available later in life.

Furthermore, estate planning is not a one-time event but rather an ongoing process that should be reviewed and updated regularly to reflect changes in your life circumstances, financial situation, and estate planning goals. By starting estate planning early and revisiting your plan regularly, you can ensure that your estate plan remains current and effective, providing peace of mind for you and your loved ones for years to come.

Estate Planning Checklist


estate planning checklist

Individuals seeking to organize their affairs and protect their assets for the future should consider the seven estate planning checklist items below when creating an estate plan. These key steps and considerations ensure that your estate plan is thorough and effective. From identifying important documents to appointing decision-makers and reviewing beneficiary designations, the estate planning checklist below offers a structured approach to estate planning that empowers individuals to safeguard their financial legacy and provide for their loved ones with confidence.

Assess your Circumstances and Create an Inventory 

Assessing your financial, health, and family circumstances is an important first step in estate planning. Start by compiling a comprehensive inventory of your assets, including bank accounts, investments, real estate, retirement accounts, and personal belongings. Additionally, document any liabilities such as mortgages, loans, and credit card debts. This inventory provides a clear picture of your financial situation and assists in determining how your assets should be distributed.

Consider your health status and any potential future healthcare needs. Determine whether you have any existing medical conditions or anticipate significant healthcare expenses in the future. This information helps in crafting advanced healthcare directives and appointing healthcare agents to make medical decisions on your behalf if you become incapacitated.

Evaluate your family circumstances, including marital status, dependents, and familial relationships. Identify beneficiaries and potential heirs, as well as any individuals you wish to appoint as guardians for minor children. Understanding your family dynamics ensures that your estate plan reflects your wishes and addresses the needs of your loved ones.

By assessing your circumstances and creating a comprehensive inventory, you lay the foundation for a robust estate plan that protects your assets, addresses your healthcare preferences, and provides for your family's well-being.

Define your Objectives

Defining your estate planning objectives is critical, as it clarifies your intentions for the distribution of your assets, outlines your tax objectives, and addresses any other specific goals you may have. Start by identifying who you want to inherit your assets and how you wish to divide your estate among beneficiaries. Consider factors such as family dynamics, financial needs, and personal relationships when making these decisions.

Next, decide what your tax objectives and goals are. Determine how you can minimize estate taxes, gift taxes, and income taxes within the parameters of the law. Strategies such as establishing trusts, gifting assets during your lifetime, and maximizing tax exemptions can help reduce tax liabilities and preserve more of your wealth for your beneficiaries.

Additionally, consider any other objectives you may have for your estate plan. This could include charitable giving, providing for dependents with special needs, or ensuring the ongoing management of family businesses or properties. By clearly defining your objectives, you can tailor your estate plan to align with your values, priorities, and long-term financial goals, ensuring that your wishes are carried out effectively and your legacy is preserved for future generations.

Choose Decision Makers

Choosing your decision makers is a crucial aspect of estate planning, as it involves selecting individuals to manage your affairs and make important decisions on your behalf. Start by appointing an executor or personal representative who will be responsible for administering your estate and carrying out your wishes as outlined in your will or trust. Consider someone trustworthy, reliable, and capable of handling the responsibilities involved.

Additionally, designate individuals to serve as trustees if you establish trusts within your estate plan. Trustees are responsible for managing trust assets and distributing them according to the terms of the trust document. Choose individuals who possess financial acumen, integrity, and a commitment to carrying out your wishes faithfully.

Furthermore, appoint agents for powers of attorney to handle financial and healthcare matters if you become incapacitated. Select someone who understands your preferences and is willing to act in your best interests should you be unable to make decisions for yourself.

Finally, consider naming guardians for minor children if you have dependents who will require care in the event of your death or incapacity. Choose individuals who share your values and parenting philosophies and are willing and able to provide a loving and stable environment for your children.

By carefully selecting your decision makers, you can ensure that your affairs are managed competently and in accordance with your wishes, providing peace of mind for you and your loved ones.

Select Legal Documents


estate planning documents

Determining what estate planning documents you want and what to include in them will be guided by the prior steps taken above. Discussing your goals with an experienced attorney, such as those at Woodbury & Ybarra, will ensure that your estate plan includes the necessary documents to achieve your desired outcomes while remaining legally enforceable and protecting your assets. 

Most likely you will want to start by creating a last will and testament, which outlines how your assets should be distributed upon your death and appoints an executor to oversee the process.

Establishing trusts to provide additional protection and flexibility for your assets is another advisable step. Trusts can help minimize taxes, avoid probate, and provide ongoing management of assets for beneficiaries. Common types of trusts include revocable living trusts, irrevocable trusts, and special needs trusts.

Additionally, create advanced healthcare directives to specify your medical preferences and appoint someone to make healthcare decisions on your behalf if you become incapacitated. This may include a living will, which outlines your preferences for end-of-life care, and a durable power of attorney for healthcare, which designates a healthcare proxy.

Don't forget to establish financial powers of attorney to designate someone to manage your financial affairs if you become unable to do so yourself. This individual can handle tasks such as paying bills, managing investments, and making financial decisions on your behalf.

By selecting the appropriate legal documents for your estate plan, you can ensure that your wishes are honored, your assets are protected, and your loved ones are provided for according to your intentions.

Draft and Execute Documents

Once you have selected the legal documents for your estate plan, the next step is to draft and execute them. Work closely with your estate planning attorney to ensure that each document accurately reflects your intentions and complies with state laws. Review the documents carefully to confirm that they address all aspects of your estate planning objectives, including asset distribution, healthcare preferences, and decision-making authority.

After drafting the documents, schedule a meeting with your attorney to execute them properly. This typically involves signing the documents in the presence of witnesses and/or a notary public to ensure their validity and enforceability. Once executed, store the original documents in a safe and accessible location, such as a secure file cabinet or safe deposit box, and provide copies to key decision makers and trusted individuals as needed. 

Communicate Plan

Once your estate plan is in place, it's crucial to communicate its details to trusted individuals, particularly those involved in your estate plan. This may include beneficiaries, decision makers, and trusted advisors such as attorneys or financial planners. By informing these individuals about your estate plan, you ensure that they are aware of their roles and responsibilities and can act accordingly in the event of your incapacity or death. 

Additionally, open communication helps to prevent misunderstandings or disputes among family members and minimizes the risk of your wishes being contested. Consider scheduling a family meeting or individual discussions to review the contents of your estate plan and answer any questions or concerns. Providing clarity and transparency about your intentions can help to ensure a smooth and orderly administration of your estate when the time comes.

Review and Update Plan

Regularly reviewing and updating your estate plan is essential to ensure that it remains current and effective in meeting your goals and objectives. Life circumstances can change over time, including changes in your family dynamics, financial situation, and health status. It's important to revisit your estate plan periodically to reflect these changes and make any necessary adjustments.

Regularly review your estate plan to assess its relevance and accuracy. During these reviews, consider any major life events that have occurred since your estate plan was last updated, such as marriages, divorces, births, deaths, or significant changes in assets. Evaluate whether your designated decision makers are still appropriate and whether your beneficiaries and asset distribution preferences remain unchanged.

Additionally, stay informed about changes in relevant laws and regulations that may impact your estate plan, such as tax laws or probate regulations. Consult with your estate planning attorney to discuss any updates or revisions that may be necessary to ensure your estate plan remains in compliance with current laws and aligned with your objectives.

By regularly reviewing and updating your estate plan, you can ensure that it continues to accurately reflect your wishes and provides maximum protection for your assets and loved ones.

Get Expert Guidance Throughout this Process 


Daniel Ybarra Attorney

Don't let the complexities of estate planning overwhelm you. Trust Woodbury & Ybarra to simplify the process and create a comprehensive estate plan tailored to your unique needs and goals. Our experienced attorneys can guide you through every step, ensuring that your wishes are accurately documented and legally protected. With our expertise and personalized approach, you can have peace of mind knowing that your assets and loved ones are in good hands. Contact us today to schedule a consultation and take the first step toward securing your financial future.


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