Your Legacy and Estate Planning Checklist

Making and documenting a plan for what will happen to your assets after you die will help your family members carry out your wishes.

Legacy and estate planning is about so much more than writing a will, and it’s the best way to ensure that your wealth is managed, transferred and preserved according to your wishes.

And it’s not just about wealth: As part of this planning, you can even include guidance for future generations. In short, it is the best way to prepare your beneficiaries for your death and for receiving their inheritance. It also protects them from having to deal with unnecessary tax burdens or the costly probate process.

To get you started, use this checklist, broken down into three categories: Plan, prepare and protect. Executed correctly, your legacy and estate planning will be woven into your overall financial plan.

Plan Your Legacy

These beginning steps require diligence and a lot of list-making. While it may feel time-consuming, it’s important to be detailed and thorough.

#1 Make a comprehensive list of all physical assets

Walk through your home and take inventory of everything you own that is valuable. This should include art, jewelry, furniture, antiques, tools, collectibles, electronics, and so on. Also include real estate. If it’s a tangible item, add it here. Gather any important documents about these assets and make copies.

#2 Make a list of all non-tangible assets

This list will include all your bank and retirement accounts (such as 401(k)s and IRAs), brokerage accounts, and insurance policies (such as life insurance, health insurance, long-term care, and homeowners). Don’t forget to include account numbers, contact information, and any other information and instructions your survivors and attorney will need to locate and access those accounts after you die.

#3 List your financial obligations and debts

Make a detailed list of everything you owe, along with account numbers and the location of physical documents for credit cards, mortgages, auto loans, medical bills, and any other financial obligation.

#4 Do the same for your business

If you are a small business owner and you intend to leave all or part of your business to family members, make the same lists of intangible and tangible assets and debts for your business.

#5 Determine and document who will act as the estate administrator

An estate administrator is the person who will act as a legal representative for your estate and you as the decedent. It could be a surviving spouse or other family member, or it could be someone else that you trust. This person will be responsible for collecting your assets, paying creditors, and distributing assets.

#6 Create a will and other key legal documents

In addition to a will, you should also designate wishes for medical care, financial powers of attorney, medical powers of attorney, guardianship for minor children, and so on.

#7 Sign, date, and store documents safely

Make at least three copies of all of these lists and documents, and sign and date them. Give the originals to your estate administrator, the second copy to your spouse (ideally to be kept in a safe deposit box), and keep the last copy for your records.

Prepare Your Heirs

Your family needs to be aware of your wishes and have access to the documentation you’ve readied for them.

#8 Communicate your wishes to your family

If possible, don’t just create documentation; share and discuss your decisions and wishes with those who will be impacted by your death. Again, this is about so much more than wealth. You’ll want to discuss everything from how you wish medical decisions to be made on your behalf, to the charities you wish to support, and even your desires about how your wealth should be preserved.

#9 Introduce your family to your financial planner and attorney

Ideally, your children will already know the key financial professionals in your life before you pass on. At a minimum, provide contact information, but if possible, coordinate introductions. If your heirs have some level of relationship with those who have helped you manage your financial affairs, taking over that responsibility will be much easier for them.

Protect Your Beneficiaries

Through proper estate planning, you can protect your heirs from dealing with avoidable tax bills or having to deal unnecessarily with the court or probate process.

#10 Consolidate accounts where possible

As you go through the phase of creating your list of all assets, you may be surprised at how many different accounts you have. The estate planning process is a good time to consolidate accounts, which can lower costs of investing overall and will simplify management for you and your beneficiaries.

#11 Keep beneficiary designations updated

Every account and policy will have designated beneficiaries, and these designations supersede what you outline in your will and trust, so make sure they match and are in line with your wishes. Make it a routine to review and update your beneficiaries for retirement accounts, life insurance and annuities.

#12 Assign Transfer on Death (TOD) designations

Because some savings accounts and individual brokerage accounts are probated daily, amend them to include a TOD designation. This way, your beneficiaries will be able to receive assets directly without going through probate.

#13 Keep other documents current

Every time you experience a major life change, and otherwise every one to two years, review your will, healthcare directives, and other documents to ensure that they are current.

Make sure your estate and legacy planning is in a good place. Ironwood Wealth Management can help you make the most of your financial future — for you and your family. Get started today.