Creating an Estate Plan and Getting Your Affairs in Order

Creating an estate plan is a great way to take care of your family. An estate plan ensures that your loved ones know your wishes and that all of the necessary paperwork for care and end-of-life matters are in order.

It isn’t a fun thing to think about, which is why many people put it off, but your family will be grateful for your forethought and care. Here’s what you need to know about estate planning.

What Is an Estate Plan?

An estate plan is a way to detail your wishes in the event of your death or inability to advocate for yourself. It also includes all of the required documents that will enable your loved ones to fulfill your wishes. While the important part is having the documents complete and in an organized place, some people also include a letter to their family, walking them through the most important points and telling them which documents are available.

It’s often helpful to consult with an attorney to make sure everything is covered, though if your estate is small, a DIY estate planning kit may be all you need.

How Much Does Estate Planning Cost?

The average cost for estate planning varies depending on the size and complexity of your estate. It can cost nothing to a few hundred dollars if you go the DIY route, or up to $10,000 or more for very large estates.

When to Start Estate Planning

Ideally, estate planning should begin as soon as you have assets, or when you have dependents who’ll need to be cared for in the event of your death. This estate plan should be updated every three to five years. It’s never really too early to start, but if you haven’t already created one, the next best time to create one is now. The key is to have an estate plan complete and in place before it’s needed. This will save your family unnecessary stress at an already stressful time. Making an appointment to see a professional such as an estate attorney is a helpful first step.

Important Estate Planning Documents

While your estate plan may vary depending on your assets and the complexity of your financial situation, there are some documents every estate plan should include. Lisa J. Shultz, author of A Chance to Say Goodbye: Reflections on Losing a Parent, shares this helpful list of documents to put together when considering how to create an estate plan:

• Last Will and Testament
• Living Will and advanced directive forms for medical decisions
• Inventory of assets (including real estate, vehicles, collectibles, stocks, retirement plans, and other investments)
• Power of Attorney – General and Medical
• Digital Assets Access Authorization Form
• Advance Directive-Planning for Important Health Care Decisions
• HIPAA Privacy Authorization Form
• Information needed for a death certificate
• Declaration of disposition of last remains
• Information and instructions on business dealings
• Key contact list of all professionals/doctors/institutions
• Key contact list of all friends and organizations to notify
• Other personal wishes and private communications
• Obituary draft

Why Estate Planning Matters

Shultz also notes that most of us avoid talking about topics we fear such as disability, dying, and death. Our reluctance to have important talks about our futures can cause problems if a crisis occurs and no discussions of wishes occurred before the incident. In the wake of an accident or medical event, we may be unconscious and unable to communicate with those around us, who could be bereft and left with a multitude of decisions without a clear plan to follow.

Often when we take the courageous step of allotting time to discuss and plan, we’re rewarded with peace of mind and our families are, too. In fact, estate planning is so vital that October has been designated National Estate Planning Awareness Month to bring attention to the issue.

Many wish to age in place and stay in their homes until they die. Modifications may have to be made to the home for safety and functionality as we age. We may have to arrange in-home care services. Considering other scenarios and exploring a variety of opinions can be helpful in understanding and defining what’s most important and financially viable. Often, visiting a friend or relative in senior communities and facilities can be the first step in gathering information and making decisions about our own care and living options.

Consider Care Options in Your Estate Plan

It’s never too early to take measures to provide clarity and define wishes for times when you’re at the mercy of others for your care. Have a series of conversations with family, friends, doctors, and professionals. Educate yourself and stay ahead of your needs because trying to catch up during a crisis is overwhelming. Your conscientious gift of planning has the potential to leave a loving legacy to your family after you are gone.