5 Tips for Estate Planning

5 Tips for Estate Planning

By Lis McNealey Davies, CDFA®
Owner, Financial Advisor

We all have a different vision of the legacy we would like to leave behind. Estate planning is an important component to make sure your vision becomes a reality. An estate plan also takes stress off of your family as they work through the grieving process. It may be one of the most unselfish tasks we can do to protect those we care about.

We’ve outlined the components that should be addressed as part of an estate plan below. Our team is here to help you navigate through this process.

Create a will
If you don’t already have a will created, this is where you need to start. Your will should outline important items, such as establishing guardians for your minor children, an executor of your estate, your beneficiary designations, and more. Working with an attorney on your will is recommended. We can help with financial components of this process, such as consolidating your retirement assets and creating trusts and gifting strategies to help lessen your estate taxes.

Determine your health care wishes
Your estate plan should also include having your medical wishes documented. You will need to consider what kind of treatments you would like to receive should you become incapacitated, disabled or terminally ill. You can also designate a “health care proxy” who can make decisions for you if you are incapacitated.

Power of attorney
You will want to consider who can make financial decisions on your behalf should you become unable to make them. A durable power of attorney can give the legal authorization to the trusted person to make these decisions.

Establish a trust
A trust can help your loved ones avoid going through probate court and potentially get your estate settled at a quicker pace. A trust also provides an element of privacy as anything that goes through probate court is of public record. An estate planning professional can help you determine what kind of trust would be best for your individual needs.

Additional estate planning considerations
Beyond establishing a trust, you should have a plan for how your retirement assets will be distributed. It’s important to keep your contact information up-to-date and review your beneficiaries on a regular basis if you have an employer-sponsored retirement plan. You should also let your beneficiaries know about the plans that they may have benefits coming from.

Ask your financial advisor about options for gifting to reduce any estate tax liabilities, including through a 529 savings plan or through charitable donations.

Property passing to a surviving spouse is generally exempt from estate tax. As of 2024, there is a $13.61 million limit for individuals on the amount that can be passed on to a decedent's non spousal heirs estate-tax free.

Our team can help you determine gifting strategies that will be beneficial for your personal financial position and connect you with qualified estate planning attorneys. Schedule a call or meeting with us today to discuss.

Lis McNealey Davies is owner of The Arlington Group Investment Consulting. A leader in the female focused financial advisory niche, Lis builds upon the group’s strong foundation and core offerings to drive growth and champion the group as an emerging advisory company in the divorce, widowed and life transition niches. As a previous divorcee and mom to three wonderful daughters, Lis understands firsthand the importance of financial confidence.

Trust services are available through Wells Fargo Bank, N.A. Member FDIC and Wells Fargo Delaware Trust Company, N.A.

Wells Fargo Advisors and its affiliates do not provide legal or tax advice.

Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.

The use of the CDFA® designation does not permit Wells Fargo Advisors or its Financial Advisors to provide legal advice, nor is it meant to imply that the firm or its associates are acting as experts in this field. Investment products and services are offered through Wells Fargo Advisors Financial Network, LLC (WFAFN), Member SIPC. The Arlington Group Investment Consulting, LLC is a separate entity from WFAFN.