What’s the Best Way to Do a Will and Estate Plan? A Step-by-Step Guide

Creating a will and estate plan is one of the most important things you can do to protect your family, ensure your assets are distributed according to your wishes, and avoid unnecessary complications. While estate planning can feel overwhelming, the process becomes much simpler when you know the steps involved. Here’s a guide on how to approach your will and estate plan to make sure it’s comprehensive, up-to-date, and tailored to your needs.

Step 1: Assess Your Goals and Priorities

Before diving into the documents and details, start by considering your goals for your estate plan. Estate planning isn’t just about listing assets and assigning them to beneficiaries; it’s about making sure your legacy aligns with your wishes and values.

Questions to Consider:

• Who do you want to inherit your assets?

• Are there specific items with sentimental value you want to assign to certain people?

• Do you have minor children or dependents who need a guardian?

• How do you want your healthcare and financial decisions handled if you’re incapacitated?

• Are there charitable causes or organizations you’d like to support?

Tip: Write down your goals and priorities. This document will serve as a guide for making decisions as you proceed.

Step 2: Make a Comprehensive List of Your Assets

Once you have a clear idea of your goals, the next step is to take stock of your assets. A thorough inventory ensures nothing is overlooked and helps in determining how best to distribute them.

Common Assets to Include:

• Real estate, vehicles, and valuable personal property (like jewelry or art)

• Bank accounts, retirement accounts, and investment portfolios

• Life insurance policies and any business interests

• Digital assets, such as online accounts, cryptocurrency, and intellectual property

Tip: Keep your list organized, detailing the estimated value of each asset and whether it has any named beneficiaries already.

Step 3: Choose Key People for Your Estate Plan

An estate plan often requires appointing individuals to specific roles, each with its own responsibilities. Carefully selecting these people is crucial to ensuring your estate is managed smoothly.

Key Roles to Consider:

• Personal Representative/Executor: The person responsible for carrying out the terms of your will.

• Trustee: If you create a trust, the trustee manages and distributes the assets according to your instructions.

• Guardian: For parents of minor children, a guardian should be named to care for them if you pass away.

• Healthcare Proxy: This person will make medical decisions on your behalf if you’re unable to do so.

• Financial Power of Attorney: This role gives someone authority to manage your finances if you’re incapacitated.

Tip: Choose people you trust and who are comfortable with these roles. Communication is key; make sure each person knows and accepts their responsibilities.

Step 4: Draft Your Will

Your will is a fundamental part of your estate plan, detailing how you want your assets distributed, who should care for your minor children, and who will execute your wishes. You can draft a will on your own or work with an attorney for a more customized approach.

What Can Be Included in a Will:

• Asset Distribution: Specify who receives your assets, including any specific items you want to leave to certain people.

• Guardian for Minor Children: Name a guardian if you have children under 18.

• Personal Representative/Executor: Appoint an individual who will oversee the distribution process.

• Residuary Clause: This clause handles any assets not specifically mentioned in your will.

Tip: While online templates exist, consulting an attorney ensures your will complies with state laws and fully addresses your unique circumstances.

Step 5: Consider Setting Up a Trust

For many people, a trust is a valuable addition to their estate plan. Trusts can bypass probate, provide privacy, and offer greater control over how assets are managed and distributed. There are several types of trusts, but the most common for estate planning is a revocable living trust, which allows you to modify or dissolve it during your lifetime.

Benefits of a Trust:

• Avoids Probate: Trusts don’t go through probate, which can save time and legal fees.

• Privacy: Trusts are private documents, while a will becomes public during probate.

• Control Over Distribution: You can set conditions on when and how beneficiaries receive their inheritance.

Tip: Discuss your specific needs with an attorney to determine if a trust is right for you, and to ensure it’s set up properly.

Step 6: Set Up Powers of Attorney and Healthcare Directives

These documents are essential for protecting yourself if you become incapacitated and can’t make decisions on your own.

Key Documents:

• Financial Power of Attorney: Appoints someone to manage your finances if you’re unable to do so.

• Healthcare Power of Attorney: Designates someone to make medical decisions on your behalf.

• Living Will/Healthcare Directive: Outlines your preferences for medical treatment in specific situations, such as end-of-life care.

Tip: Review these documents regularly, especially if there are changes in your family or close relationships, to ensure the people appointed are still the right choices.

Step 7: Update Beneficiary Designations

Many assets, such as life insurance policies and retirement accounts, allow you to name beneficiaries. These designations override instructions in your will, so keeping them updated is essential.

Common Accounts with Beneficiaries:

• 401(k)s, IRAs, and other retirement accounts

• Life insurance policies

• Payable-on-death (POD) or transfer-on-death (TOD) bank accounts

Tip: Review beneficiary designations after major life events like marriage, divorce, or the birth of a child to make sure they reflect your current wishes.

Step 8: Regularly Review and Update Your Estate Plan

Estate planning is not a one-time task. As life changes—through marriage, having children, buying property, or other major events—your estate plan should evolve too. Regular reviews ensure that your plan stays current and reflects your most recent intentions.

When to Review Your Plan:

• After major life events, such as marriage, divorce, or the birth of a child

• If you acquire or sell significant assets

• Every 3–5 years to ensure everything is up to date

Tip: Set a reminder on your calendar to review your estate plan with an attorney at least every few years, or as major life changes happen.

Work with an Experienced Estate Planning Attorney

While it’s possible to create a basic will on your own, working with an estate planning attorney ensures that all aspects of your estate plan are covered, legal requirements are met, and your unique needs are addressed. An attorney can help you navigate complex issues, avoid common pitfalls, and make sure your estate plan provides for your loved ones in the best way possible.

Creating a will and estate plan doesn’t have to be overwhelming. By following these steps and working with the right professionals, you can create a comprehensive, up-to-date estate plan that reflects your wishes, secures your assets, and brings peace of mind to you and your family.