Estate planning?

[ua_guy]

When did you do it, formally? If you haven't done it, why not? Any tips, things to ponder?

I know estate planning will vary depending on one's situation, but I've felt, my husband and I have felt, this is an area where we're severely lacking. Middle age+ crept up on us and more time has gone by than we've realized. We've encountered a scare with my husband's health. Estate planning is something we will dig into immediately following this next hurdle.

How did you do it? When did you do it. Things I can think of are:

-Wills
-Healthcare directives / end of life wishes
-Putting assets into a trust where possible, to avoid things like probate

What else?

[Fishindude77]

This is something we need to get to work on as well.

[kork13]

We're 36/37 y/o, assets worth ~$1.6M, 3 kids (age 2-8).

I'm in the military, so we have the basic documents in place (simple will, healthcare directive/POA). We also have TOD beneficiaries on all of our bank/investment accounts. But I haven't done anything beyond those.

However, I'm not sure how needful a trust or anything more advanced like that would really be at this point. We're well below the estate tax limits, only passing assets to spouse/children, and nothing more complicated than that right now.

[disneysteve]

We did our paperwork soon after our daughter was born. That said, we really need to have it all reviewed and updated. The guardianship stuff for our daughter is no longer relevant. I believe we named my now-deceased cousin as first-line executor. Plus the simple fact that our estate is far more involved now than it was 27 years ago.

[srblanco7]

Our paperwork is about a decade old and is in need of update. Our kids are now both over the age of 18, so guardianship is no longer relevant. And we need to review the language around naming the trust as a beneficiary - as I believe we have many accounts with our kids labeled as secondary beneficiaries - whereas in order to put the trust into effect I believe the secondary beneficiary should be the trust itself.

[myrdale]

-Wills
-Healthcare directives / end of life wishes
-Putting assets into a trust where possible, to avoid things like probate

What else?

List beneficiaries on all accounts. Your bank accounts, your 401(k) and IRA are the ones that leap out. Confirm beneficiaries on life insurance.

[Bozzdivine]

Hey everyone, Great discussion! Just like many of you, we also found ourselves needing to revisit our estate planning as circumstances changed. In addition to the points already mentioned, it's also important to consider durable power of attorney documents, which allow someone to make decisions on your behalf if you become incapacitated. Also, for those with significant digital assets (like cryptocurrency, online businesses, or social media profiles), ensure you have a plan for these in your estate planning. Digital estate planning is a relatively new field, but increasingly important. Lastly, don't forget about letter of intent. It's a document left to your executor or a beneficiary, capturing what you want done with a particular asset after your death. It can be more personal and detailed than a will, ensuring your wishes are carried out. Best of luck on this journey!

[QuarterMillionMan]

The better question would be should you hire an estate attorney which would cost thousands or go the cheaper route with using software less than $100. I did the cheaper route and used software.

[LivingAlmostLarge]

We did it last year and hired an attorney. It cost us $10k? I think I blogged the price. We had a lot to be done. We had done a will when the kids were born in 2010 but never updated it. This time we did it more than legalzoom. Before legal zoom was enough. Now we did power of attorney, medical directives, etc. Everything the whole shebang.

Not only did we do all of the kids stuff, we set up 3 trusts. Trust for the kids, and pop up testamentary trust for each other and then the kids. We did that so we could gift the kids stocks from DH's company and in hopes that it's worth a lot. Was it expensive? yes extremely. But it's not for most people. Most don't need it and don't waste your money doing it.

If we weren't doing that we would have used a basic lawyer and set up a pop up testamentary trust for $2k and will, medical, etc. It's everything else that cost us a lot of money. But it's a lot of money that's at stake and it made sense for us. My advice? See if your company has the benefit and then use it. If not then ask around and get someone local from friends. I called around and for basic I think around $2-3k. But what we wanted and needed was a bit different.

[QuarterMillionMan]

Estate planning also involves changes to the documents every so often as changes occur. We might think it is a one-time thing and be done with it. Banks or brokerage accounts change as in my case TD Ameritrade will switch to Schwab this weekend. Some might add a rental property or sell a house, etc. When using DIY software you can make the changes yourself. If you pay an estate attorney you will have to go back to that attorney to make the revisions or addendums. Things to think about before developing your estate plans.

[AllyStreelman]

Do you have a financial planner/have worked with one in the past? They can walk you through what you need for your individual situation and help you follow the right order of operations.