Estate Planning

Estate Planning

Estate planning is an essential part of the financial plan to ensure that your wishes are followed upon incapacity or death. From meeting responsibilities to planning to leave a legacy, it is important to fully document what you want to happen and then regularly revisit it to keep it up to date.

It is also necessary to be aware of estate taxes. Most people will fall well below the 2026 federal estate tax exclusion of $15 million, but some states have estate tax thresholds that start at much lower amounts.

The Details

Beneficiary Designations can be added to accounts to make them transfer immediately upon death without probate.

A Will is used to specify what happens to your property when you die and who will be in charge of managing your estate. Importantly, it is also where parents designate guardians for their minor children.

A Financial Power of Attorney allows someone you choose to manage your financial affairs while you are alive, usually when you are incapacitated.

A Health Care Proxy allows someone you choose to make medical decisions for you when you are unable to make them yourself.

A Living Will provides directions for caregivers about what treatments you would prefer if you are not able to make your own decisions.

A HIPAA Release Form gives someone you choose access to your medical records which is required by health care facilities to give your information to someone other than yourself.

A Living Trust provides a legal container for assets that avoids the need for legal proceedings at incapacity or death.

Estate Taxes may be levied at death based on assets and state of residence.