Follow a Process to Plan your Estate Properly

03 Jan Follow a Process to Plan your Estate Properly

It’s simple to put together a will. Anyone can scribble down their wishes on the back of a napkin, sign it, and put it away in the filing cabinet for later.

What’s more complicated is making a proper, well thought out plan. You likely have more assets than you’re aware of, and deciding who should inherit is partly about tax planning and partly about fulfilling your wishes for any disability or end-of-life scenario.

The best way to make sure you’ve got everything covered is to work with an advisor who follows a thorough process. This means you’ll be working closely with the advisor throughout the process. The advisor has a chance to get to know you and to understand your goals, your values and your relationships.

6 Components of Wealth Planning

The planning process is fairly straightforward, but it should cover all aspects of the wealth management process. These include:

• Financial planning, or reviewing your financial situation as well as clarifying your goals for the present and the future;
• Tax planning, or understanding the strategies that are relevant for you and your specific situation in order to decide how to structure your plan;
• Family law issues, or clarifying the rights of your spouse, children and other family members when it comes to your estate;
• Disability planning, or designating powers of attorney for finances and care;
• Estate planning, or writing your will, as well as designating beneficiaries for any savings plans; and
• Insurance planning, or considering any insurance needs, including disability, critical illness and long-term care insurance.

A good advisor will take each of these aspects into account when considering your situation.

8 Steps of the Wealth Planning Process

Meeting with an advisor for the first time can be stressful, but it helps to know ahead of time what to expect. An advisor working through a complete plan will go through each of these steps:

1. Introductory information. This is the getting-to-know-you stage. You share information about family relationships, assets and legal arrangements, and your advisor verifies these facts as necessary. The advisor may use forms to ensure all relevant information has been covered.
2. Identifying objectives. In this first real conversation between you and your advisor, you share your goals and your values.
3. Analysis. The advisor shares any factors beyond your control that should be considered, including tax implications, rights of your family members, and any insurance needs.
4. Identifying strategies. With the background information completed, you and the advisor work together to identify strategies that can help you achieve your goals.
5. Evaluating strategies and making recommendations. The advisor makes recommendations for the best course of action to support your values and achieve your goals.
6. Deciding on the plan and taking instructions. You consider the advisor’s recommendations, ask any further questions, and agree on a plan.
7. Implementation. The advisor will draft the plan and help you to take any necessary steps toward implementation, which may mean referrals to other professionals, such as a financial planner, accountant or lawyer.
8. Review and follow up. Every plan, no matter how perfect, will need to be reviewed at intervals to ensure it still works. The law evolves, family circumstances change, and time marches on. Your wealth plan will change too.

Don’t be overwhelmed. This planning process may feel complicated. But for the advisor, these are simply the necessary steps to construct the perfect plan for you and your situation. That’s why it makes sense to work with a professional.

To learn more about preparing your estate, contact us.

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.