Everyone could use an estate plan – not just the wealthy.
Estate Planning Strategies
Everyone could use an estate plan. It’s not about what you own – but putting you in control. Estate planning can often be fairly simple with professional help. Sometimes it’s more complex. In either case, here’s helpful information to begin thinking about your plan.
You might associate estate planning with famous people you see in the news. In fact, estate planning could be appropriate for everyone.
Consider your assets: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, house, cars, jewelry, and heirlooms. This is your estate and your estate plan can define what you would like to happen to these assets when you die.
An estate plan can also take care of you as you get older or if you become ill or incapacitated. Being wealthy has little to do with it.
If you don’t make your own plan, your family may be left scrambling at an already difficult time. Bottom line: If you don’t decide, someone will decide for you.
Will
Durable power of attorney
Health care power of attorney
Living will
Revocable living trust
Beneficiary designations can be an easy way to transfer an account or insurance policy when you die. But if you didn’t complete beneficiary designations, or haven’t updated them, they can cause issues with your estate plan.
Designations on forms are often filled out without much thought – but they’re important and deserve your attention. Beneficiary designations on forms like your insurance policy and 401(k) take priority over other estate planning documents, like your will or trust.
Let’s say you specify in your will you want everything to go to your spouse after your death. But you never changed the beneficiary designation on your life insurance policy and it names your ex-spouse. Your ex may end up getting the proceeds.
Making the decisions involved with estate planning may seem overwhelming. It doesn’t have to be. You can start by organizing your important documents.
Turn to a team of trusted professionals, including your financial advisor, an estate planning attorney, and your accountant. They know the questions to ask and can help you avoid potential pitfalls.
If you currently don’t have relationships with an attorney and an accountant, we can make some recommendations. We can also discuss our role in the planning process and how you can get started.
- Everyone could use an estate plan – not just the wealthy.
- 5 documents are essential for many estate plans.
- An estate planning attorney and your accountant will work with your Financial Advisor.
Estate Planning: a matter of control
You might associate estate planning with famous people you see in the news. In fact, estate planning could be appropriate for everyone.
Consider your assets: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, house, cars, jewelry, and heirlooms. This is your estate and your estate plan can define what you would like to happen to these assets when you die.
An estate plan can also take care of you as you get older or if you become ill or incapacitated. Being wealthy has little to do with it.
If you don’t make your own plan, your family may be left scrambling at an already difficult time. Bottom line: If you don’t decide, someone will decide for you.
Five essential documents
These five documents are often essential to an estate plan:Will
Durable power of attorney
Health care power of attorney
Living will
Revocable living trust
Why beneficiary designations are important
Beneficiary designations can be an easy way to transfer an account or insurance policy when you die. But if you didn’t complete beneficiary designations, or haven’t updated them, they can cause issues with your estate plan.
Designations on forms are often filled out without much thought – but they’re important and deserve your attention. Beneficiary designations on forms like your insurance policy and 401(k) take priority over other estate planning documents, like your will or trust.
Let’s say you specify in your will you want everything to go to your spouse after your death. But you never changed the beneficiary designation on your life insurance policy and it names your ex-spouse. Your ex may end up getting the proceeds.
Turn to a team of professionals
Making the decisions involved with estate planning may seem overwhelming. It doesn’t have to be. You can start by organizing your important documents.
Turn to a team of trusted professionals, including your financial advisor, an estate planning attorney, and your accountant. They know the questions to ask and can help you avoid potential pitfalls.
If you currently don’t have relationships with an attorney and an accountant, we can make some recommendations. We can also discuss our role in the planning process and how you can get started.
Next steps
- Make an appointment with us to talk about your estate planning goals.
- Start gathering your financial documents.
- Check the beneficiary designations on your financial and investment accounts.
Formally documenting your wishes for your estate may seem daunting, as it involves grappling with your mortality. But it is crucial part of a comprehensive wealth plan, one that goes beyond finances and cash flow.
Formal estate plans can help:
- Lead to timely, efficient estate settlement and distributions to beneficiaries
- Reduce potential family dynamics issues
- Prevent unwanted tax liability
- Provide comfort and continuity that your wishes will be followed as you age and after you’re gone
- Align your wealth transfer with your charitable vision.
It’s important to remember that your estate plan isn’t set in stone. You should revisit it at least annually to account for changes to your goals or life. We can refer you to Wells Fargo affiliates or work with your existing estate plan provider to provide crucial guidance for this pillar of effective wealth management.
Essential Estate Planning Documents
The number of documents in your estate plan will depend entirely on your circumstances, but these five can be considered must-haves for most people.
Will – This legal document expresses your wishes for distributing your property after you die. Establishing a will is important, especially if you have minor children or significant assets.
Durable Power of Attorney - This gives someone else authority to make financial decisions on your behalf if you become unable. This is highly recommended as it ensures your finances will be handled properly if you cannot do so yourself.
Healthcare Power of Attorney - If you can’t communicate your wishes regarding your care, this document ensures they will be honored in the event of your incapacitation.
Living Will - This outlines your wishes for end-of-life care, including life support or other medical treatments.
Revocable Living Trust - With this document, you can avoid probate court and distribute your property according to your wishes after you die. This can save time and money while adding an additional layer of privacy.
Trust services available through banking and trust affiliates in addition to nonaffiliated companies of Wells Fargo and its affiliates.
Wells Fargo and Company and its Affiliates do not provide tax or legal advice. Be sure to consult with your tax and legal advisors before taking any action that could have tax consequences. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.
Wealth & Investment Management offers financial products and services through bank and brokerage affiliates of Wells Fargo & Company. Bank products and services are available through Wells Fargo Bank, N.A., Member FDIC.
- Everyone could use an estate plan – not just the wealthy.
- 5 documents are essential for many estate plans.
- An estate planning attorney and your accountant will work with your Financial Advisor.
Estate planning: a matter of control
You might associate estate planning with famous people you see in the news. In fact, estate planning could be appropriate for everyone.Consider your assets: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, house, cars, jewelry, and heirlooms. This is your estate and your estate plan can define what you would like to happen to these assets when you die.
An estate plan can also take care of you as you get older or if you become ill or incapacitated. Being wealthy has little to do with it.
If you don’t make your own plan, your family may be left scrambling at an already difficult time. Bottom line: If you don’t decide, someone will decide for you.
Five essential documents
These five documents are often essential to an estate plan:- Will - Instructions for distributing your assets when you die. You will name a personal representative (executor) to pay final expenses and taxes and distribute remaining assets. Name a guardian to raise your minor children if both parents die.
- Durable power of attorney – You give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.
- Health care power of attorney - You choose someone to make medical decisions on your behalf if something were to happen and you can’t make them yourself.
- Living will – Shares your intentions about life-sustaining medical measures if you are terminally ill. No one is given authority to speak for you.
- Revocable living trust - You can provide for continued management of your financial matters while you are alive, after your death, and even for generations after.
Why beneficiary designations are important
Beneficiary designations can be an easy way to transfer an account or insurance policy when you die. But if you didn’t complete beneficiary designations, or haven’t updated them, they can cause issues with your estate plan.Designations on forms are often filled out without much thought – but they’re important and deserve your attention. Beneficiary designations on forms like your insurance policy and 401(k) take priority over other estate planning documents, like your will or trust.
Let’s say you specify in your will you want everything to go to your spouse after your death. But you never changed the beneficiary designation on your life insurance policy and it names your ex-spouse. Your ex may end up getting the proceeds.
Turn to a team of professionals
Making the decisions involved with estate planning may seem overwhelming. It doesn’t have to be. You can start by organizing your important documents.Turn to a team of trusted professionals, including your financial advisor, an estate planning attorney, and your accountant. They know the questions to ask and can help you avoid potential pitfalls.
If you currently don’t have relationships with an attorney and an accountant, we can make some recommendations. We can also discuss our role in the planning process and how you can get started.
Next steps
- Make an appointment with us to talk about your estate planning goals.
- Start gathering your financial documents.
- Check the beneficiary designations on your financial and investment accounts.
Trust services available through banking and trust affiliates in addition to non-affiliated companies of Wells Fargo Advisors.
Wells Fargo Advisors and its affiliate do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.