Where to start if you don’t have an estate plan

Creating an estate plan — including writing a will and choosing who will get your assets — is an easy task to put off. Estate planning is a topic few of us want to think about, and it can seem expensive or overwhelming to begin. However, dying without an estate plan in place means the law will decide who gets what from your estate. You also risk leaving your loved ones with an unnecessary burden during an already challenging time.

Here are steps you can take today to start building your estate plan. 

Create a will 

A will is a legal document that states how you want your affairs handled after your death, including who will receive specific property. Through your will, you can also name guardians for your minor children if your death leaves them without a surviving parent. In addition, your will allows you to designate an executor — the person responsible for carrying out your wishes.

You can create a will using various online tools or with the help of an estate planning attorney. You may also have access to legal services through your employee benefits. 

Beneficiaries        

Some assets, such as life insurance proceeds, retirement plan survivor benefits and IRAs, aren’t governed by your will. Instead, you name beneficiaries for these assets directly through your insurance company, retirement plan sponsor or IRA provider.

Once you’ve named beneficiaries, it’s important to keep those designations up to date. Life events such as marriage, divorce, or the birth of a child may require changes.

Additional estate documents

Beyond a will, there are other estate planning documents that are essential parts of your plan. You can create these forms through online services, with the help of an estate planning attorney or through legal benefits offered by your employer.

A living will allows you to specify which healthcare services you do and do not want to receive in a life-support situation, reducing uncertainty for loved ones.

A healthcare power of attorney (POA) complements a living will by appointing a trusted person to make medical decisions on your behalf if you become incapacitated. This individual can carry out your intentions when situations fall outside the scope of your living will.

A financial power of attorney allows you to appoint someone to manage non-medical matters if you’re unable to do so. This includes accessing financial accounts, making investment decisions and paying expenses as needed.

Digital assets and your estate

Planning for what happens to your digital assets after death has become an important area of estate planning. Without clear instructions, your survivors may not be able to access your computer, cell phone, email, digital media like blogs, social media accounts or online payment accounts.

Creating a “digital inventory,” along with a letter of instruction, can help ensure these assets are handled efficiently. Your inventory should list digital assets, along with their location, usernames, passwords or PINs, and specify who should have access to each.

Get professional guidance

For more information on the documents we’ve outlined, contact your EY Navigate™ financial planner. Consult an estate attorney for more detailed legal guidance on estate planning.