When most people think about estate planning, they focus on the basics: writing a will, naming beneficiaries, and choosing an executor. While those are essential steps, they only cover part of the picture. A complete estate plan should go further, helping your loved ones manage both the financial and personal sides of your legacy. Here are some often overlooked elements to consider.
1. Add a Personal Letter of Intent
Not everything meaningful can be captured in a legal document. A letter of intent allows you to share your values, wishes, and reasoning behind key decisions. It can help clarify your intentions and reduce confusion among family members. While not legally binding, this letter can complement your will by providing emotional context and guidance.
2. Use a Personal Property Memorandum
Some of the most sentimental items in an estate are not the largest or most valuable. A personal property memorandum (PPM) lets you specify who receives meaningful belongings such as jewelry, heirlooms, or furniture. The PPM is referenced in your will and can be updated anytime without rewriting your entire estate plan.
3. Plan for Incapacity with Powers of Attorney
Estate planning is not only about what happens after you are gone. A durable power of attorney (POA) ensures someone you trust can manage finances, pay bills, or communicate with healthcare providers if you become unable to do so. Review and update these documents every few years to ensure institutions will still honor them.
4. Don’t Forget the Details
- Include your pets. Designate a caregiver or create a pet trust to fund their care.
- Address special assets. Firearms, antiques, or collectibles may require extra steps for legal or appraisal reasons.
- Fund your trusts. A trust is only effective if the assets are retitled properly.
- Name backups. Choose alternate executors, trustees, and agents in case your primary designees cannot serve.
- Plan for taxes. Even if your estate is not taxable, heirs may owe income or inheritance taxes on certain assets.
A thoughtful estate plan protects your loved ones, reduces potential conflicts, and ensures your wishes are carried out exactly as intended.
If you have questions about reviewing or updating your estate plan, our team at Somich & Associates CPAs is here to help.