None of us want to think about mortality but avoiding it doesn’t eliminate any risk. One of the greatest gifts we can leave our loved ones is clarity. Estate planning provides a clear blueprint for how our affairs should be handled if we become incapacitated or pass away.
What will happen to your most cherished possessions like grandma’s wedding ring, grandpa’s coin collection, and other gifts thoughtfully passed down to you? Who do you trust the most to make decisions on where your pets, property and money go? The answer: you!
It’s important that you document who should get what and who makes critical decisions on your behalf if you become incapacitated. But it’s more than simply having a will and distributing assets after death. Rather, it should be an active, forward-looking decision-making process that protects family, wealth, and legacy.
While a will is a fundamental tool that outlines distribution upon death, it is an incomplete one that does not avoid the probate court process, which can be time consuming and expensive. At its most basic level, your estate plan should include the following legal documents:
- Last Will and Testament: Directs asset distribution, names guardians for minor children, and appoints an executor after you die.
- Financial Power of Attorney: Designates someone to handle financial and legal matters if you become incapacitated.
- Living Trust: Holds assets during life and facilitates a smooth transfer after death while avoiding probate.
- Advance Health Care Directive: Outlines medical wishes and decision-makers.
- Digital Directive: Designates someone to access, manage, or delete digital assets (i.e. close social media profiles, email accounts, etc.).
It’s easy to put estate planning on the back burner and to think “It’s not for me” or “I’ll deal with this later.” But if you have any type of assets (even pets!) or preferences about your health care, you should consider creating an estate plan now (or updating your current one if it’s been a while!).
By clearly outlining your wishes in the essential estate planning documents above, you make things easier on your family by eliminating confusion and potential disagreements about how your assets should be distributed. And it provides peace of mind for yourself too.
Partnering for Precision: Estate Planning with Wealth
At Regency Capital Management, we believe that estate planning is a cornerstone of financial strategy and long-term wellness. We recognize that estate planning is not a one-size-fits-all process. That’s why we’ve partnered with Wealth, a leading estate planning technology platform, to bring our clients a customized estate plan solution. Wealth empowers individuals and families to create legal, high-quality, estate documents such as wills, trusts, and health care directives while also offering tools for visualizing complex estate plans, modeling tax implications, and managing digital assets. Whether you’re starting from scratch or refining an existing plan, our collaboration with Wealth ensures that your estate strategy is both comprehensive and easy to navigate.
No matter what your age, estate planning is for everyone.
I look forward to sharing more on estate planning, our Wealth partnership, and how we can help!
About the Author
Kawika Shoji is an investment advisor and portfolio manager at Regency Capital Management. He advises individuals, families, retirement plans, and institutions to assess, develop, and implement their investment and financial goals.
