So you know you want to create an estate plan…but where do you start? The first step should be identifying your goals and priorities. But even that sounds daunting! How do you know what to do? What’s most important? You’ll need to do a bit of soul-searching, but not to worry–we’ve got you covered with some questions to get the brain juices flowing to help you come up with your main goals and priorities for your estate planning journey. Let’s dive in!
Different types of estate planning documents to consider
Before you can truly identify your estate planning goals and priorities, you have to understand what options are out there. Here are some different estate planning options you can consider:
- Last Will and Testament: This document outlines how you want your assets distributed after your death, names guardians for minor children, and can even include funeral arrangement preferences.
- Trusts: Trusts offer more control and flexibility than a will, allowing you to set specific conditions for how and when assets are distributed to beneficiaries. They can also help minimize estate taxes and avoid probate.
- Living Will: A living will outlines your wishes for medical treatment if you become incapacitated and unable to make decisions for yourself.
- Medical Power of Attorney: This document designates someone you trust to make medical decisions on your behalf if you are unable to do so.
- Power of Attorney: This allows you to appoint someone to manage your financial affairs if you become incapacitated.
What are the different goals you need to decide
Just saying “goals” is pretty vague. What does that really mean? Here are the different types of goals you should consider when estate planning:
- Determining what assets and belongings you want to include in your will/trust
- Selecting beneficiaries
- Selecting trustees (if creating a trust)
- Deciding on healthcare decisions
- Selecting a medical proxy person
- Selecting a power of attorney person
- Outlining funeral arrangements
- Naming a guardian for minor children
- Naming a “guardian” for pets
All of the above items are the various different goals people have for estate planning. Whether you want to achieve every single one of these or just a few, that’s okay too!
Questions to ask yourself to figure out your goals
The previous section may have you feeling woozy. That’s a lot to consider. It’s deep. Where do you even start? Here are some questions to help guide you through this intense process of deciding your estate planning goals.
For distributing assets:
- What are my most valuable assets? (Think: house, car, investments, savings accounts, etc.)
- Who do I want to inherit these assets? (Family, friends, charities?)
- Are there any conditions I want to place on inheritance? (E.g.: Daughter only gets inheritance after turning 21, getting married, etc.)
- Do I want to leave specific items to specific people? (e.g., jewelry to a daughter, a car to a nephew)
- Do I want to leave any assets to charity?
- How do I want to divide my assets if I have multiple beneficiaries? (Equally? By percentage? Specific amounts?)
For medical decisions if incapacitated:
- What are my wishes for end-of-life medical care?
- Would I be okay with being on life support?
- What about any specific treatments regarding pain management?
- Who do I trust to make medical decisions for me if I can’t?
- Are there any religious or spiritual beliefs that should guide my medical care?
- Do I have any preferences regarding organ donation or body donation to science?
For financial and legal decisions if incapacitated:
- Who do I trust to manage my finances if I become incapacitated?
- What are my wishes regarding my financial accounts and investments?
- Who do I want to handle my legal affairs?
- Do I have any outstanding debts or legal obligations that need to be addressed?
For final arrangements:
- Do I have any specific funeral or memorial preferences?
- Do I want to be buried or cremated?
- Where do I want my remains to be laid to rest?
- Are there any specific readings, music, or rituals I would like included in my service?
- Do I want to pre-pay for my funeral expenses?
For guardianship over children and pets:
- If I have children, who would be the best guardian for them?
- Who would provide the best care for my pets?
- What are my wishes regarding my children’s education and upbringing?
- Are there any specific values or beliefs I want to instill in my children?
- Do I want to set aside funds for my children’s or pets’ care?
Determining what’s your number one priority
If you are on a budget or in a time crunch, you should also consider which of these goals are the most important to you so you can get that one done first (or only). For example, if you are a parent to minor children, getting a will with asset distribution and guardianship appointment may be your #1 priority since you want to ensure your kids are taken care of. On the other hand, if you suffered a recent injury and are undergoing a risky surgery, you may want to consider creating a medical proxy and create a living will with your healthcare wishes.
The bottom line on identifying your estate planning goals and priorities
Whether you’re looking to protect your children, determine medical decisions, or appoint a power of attorney, you can achieve it with estate planning. The struggle may be identifying exactly what your goals are. These are deep and meaningful decisions, so it’s no wonder it’s difficult! With the questions we’ve listed above, you should be able to start getting the wheels turning and start coming up with your goals. Remember, what you are doing is incredibly important to protecting yourself and your loved ones, so congrats on getting started on your estate planning journey!
Nicole Sheehey is the Head of Legal Content at HelloPrenup, and an Illinois licensed attorney. She has a wealth of knowledge and experience when it comes to prenuptial agreements. Nicole has Juris Doctor from John Marshall Law School. She has a deep understanding of the legal and financial implications of prenuptial agreements, and enjoys writing and collaborating with other attorneys on the nuances of the law. Nicole is passionate about helping couples locate the information they need when it comes to prenuptial agreements. You can reach Nicole here: Nicole@Helloprenup.com
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