Odds are you’re reading this because you’ve been searching for some estate planning tips. We’re glad you’re here and are thinking carefully about this critical topic. This article isn’t really going to discuss the law, though. We’re going to focus on some non-legal strategies for your legacy planning.
Setting up your estate plan is an investment—not just of money, but also of time. Everyone wants to see the investment pay off. That means having all of your bases covered with proper legal documents. This includes your Will and/or Trust, Power of Attorney for Property, Power of Attorney for Healthcare, and Living Will.
But your legal documents are not the entire story. Just as important are the people involved (your Fiduciaries) and how you help them carry out your wishes. And that isn’t something the law can provide guidance for.
Let’s discuss a few non-legal estate planning tips that will help your plan go smoothly. By implementing even one of these three, a lot of hassle can be avoided.
1. Choose Reliable & Trustworthy Fiduciaries
One of the most overlooked estate planning tips is about who you involve in the plan. Many people think about whether they need a Will or a Trust, what their Powers of Attorney should look like, and what their wishes are on artificial life support.
But what if who you pick to act on your behalf can’t, or won’t, carry out your wishes?
The best plan in the world can fall apart if the wrong people are in charge. Executors, Trustees, and Agents with Power of Attorney aren’t just figureheads. They’re making real decisions, and they have serious legal responsibility.
Pick people who are responsible, organized, and able to follow your instructions. Bonus points if they have a cool head in a crisis. A strong sense of duty beats “good at Monopoly” every time.
For example, let’s say your oldest child is a brilliant and successful artist. But she tends to misplace her car keys weekly and lives paycheck to paycheck, no matter how much she earns. She might not be the best choice to manage your financial affairs.
On the other hand, you have a close friend who runs a successful small business. She diligently plans for her business and has experience making tough calls under pressure. Your friend would be a strong candidate to serve as your Executor or Agent with a Power of Attorney for Property.
It’s also wise to name Alternates. Life happens, and your first choice may be unable or unwilling to serve when the time comes. Not a situation we want to deal with.
Think through not just who you trust today, but also who is likely to be available and capable in the coming years.
2. Share Your Plan with Your Fiduciaries
Imagine being dropped into a plane’s cockpit and told to fly the plane with no instructions. Or let’s say there are instructions available, but no one knows where they are.
That’s what it’s like for Fiduciaries who have no idea what you planned. But since you’re here looking for estate planning tips already, odds are you know this and want to avoid the problem.
Once you’ve picked your team, tell them the basics: where your legal documents are, what their job will be, and who to call for help.
You don’t need to hand over every bank statement, password, and answer to your secret questions. But you need to give them a roadmap of where to find things when they need to. The alternative is guesswork when the time comes. And this is not the time anyone wants to be guessing.
For example, talk to you Agent with a Power of Attorney for Healthcare about what your medical preferences are, especially for end-of-life care. This includes whether you want all possible measures taken to keep you alive regardless of possibility of recovery, or if you prefer comfort care only if the odds are low.
End-of-life care wishes should also be spelled out in your Living Will, which will address artificial life support. Your Healthcare Agent needs to have a copy of this document.
Tell your Executor where you keep your original Last Will & Testament, as well as how to access it. You should also tell him or her who your attorney is.
If you’ve set up a Trust, make sure your Successor Trustee knows the content of the Trust instrument and what their role looks like. Your Successor Trustee should also have a copy of the Trust instrument on-hand, ready to go.
You don’t need to go into deep legal theory. Just plain-English conversations work best.
“Here’s the binder where everything’s kept. If anything happens to me, call my lawyer at Connell Law, PLLC and he’ll help you through it.”
A simple conversation like that can save your loved ones a lot of panic and confusion. In extreme circumstances, it could even help prevent a Will contest.
3. Keep an Organized List of Key Information
Your Fiduciaries can’t do their job if they can’t find anything.
Keep an updated list of your important information: assets, beneficiary designations, liabilities, key contacts, and locations of documents. Think of this as giving them a map to find exactly where they need to go.
Include things like:
- Bank accounts, retirement accounts, and life insurance policies
- Credit cards and any outstanding debts
- Safe deposit box locations and keys
- A list of real estate, vehicles, or other titled property
- Names and contact info for your attorney, CPA, financial advisor, and insurance agent
- People you want contacted and informed after you’ve passed away
Here’s a super important estate planning tip about crypto-assets. It does your Executor or Trustee no good to know that you own Bitcoin, XRP, Cardano, etc. if they have no idea where it is. You need to indicate if these assets are held on an exchange, like Coinbase, or on cold storage, like a USB drive.
You also have to tell your Executor or Trustee how to access the asset, or else it may be lost forever.
Review this information at least once a year. Set a dedicate time of year to do it, like right after tax season or around your birthday. Do this consistently, and let your Fiduciaries know if you make significant changes. Life moves fast, and outdated information is almost as bad as no information at all.
Final Thoughts on Estate Planning Tips for Smooth Transitions
Estate planning isn’t just about what you put on paper. It’s about setting up real people to succeed when life gets messy. That’s why we published these three estate planning tips that focus on the non-legal aspects of your plan.
Taking a little extra time now can spare your loved ones from stress, confusion, and costly mistakes down the road.
Plus, you get bonus points for being the family member who had it all together.
Choose wisely, communicate clearly, and stay organized. Your future self—and your family—will thank you.
Connell Law, PLLC provides estate planning in Rutherford County, Tennessee and the surrounding area. We also provide our clients with fillable resources and checklists to help with efficient administration.
To request a consultation, reach out to us today.
