Estate Planning Made Simple: Planning for the People You Care About Most
By Fathom Financial Partners
When you care about someone, you want to make things a little easier for them. You want them to feel supported, especially during a difficult time. That is how we think about estate planning.
Estate planning puts legal documents, financial arrangements and personal instructions in place to guide decisions during your lifetime and the distribution of your assets after your death.
Thinking about illness or death can be uncomfortable. It can bring up memories of a loss or questions you would rather put aside. It is okay to acknowledge that and start with a smaller conversation: What would the people you love need to know if they ever had to step in?
Who Should Be Involved in Your Estate Plan?
Your estate plan may involve trusted people who can help with financial matters, medical care or family responsibilities, along with your attorney and financial advisor.
Different people may be suited to different roles. Think about who understands your wishes, who could manage the responsibilities and who might care for a child or a pet. Ask whether they are comfortable taking on the role you have in mind.
You can decide how much financial information you are comfortable sharing. An initial conversation might simply be about who to call and where to find important documents.
What Estate Planning Documents Should You Review?
Estate planning documents address different needs, including the distribution of property and who may act on your behalf. An estate planning attorney can help you determine which documents fit your situation:
- A will can direct how certain property is distributed after your death and name your preferred guardian for minor children.
- A durable financial power of attorney can authorize a person you choose to manage financial matters if you become unable to do so.
- Health care documents can record your treatment wishes and authorize someone to make medical decisions when you cannot.
- A trust can provide instructions for holding, managing and distributing assets, depending on how it is established and funded.
If you already have estate documents, gather them for a review. Check that they still reflect your wishes and that the people you have named are still willing and able to help.
Why Should You Review Beneficiary Designations?
Beneficiary designations on retirement accounts and life insurance policies generally determine who receives those assets, even if your will says something different.
Review both your primary beneficiaries and your contingent beneficiaries, who serve as backups. Confirm the names on file with each financial institution or insurer, and discuss any needed changes with your advisor and attorney so those choices fit with the rest of your estate plan.
What Information Will Your Family Need?
Your family or other trusted helpers may need to know where your legal documents are kept, which accounts and insurance policies you have, who to contact and how to manage everyday responsibilities.
An Estate Directory gives you a place to organize that information. You might begin with key contacts and document locations, then add insurance and account details as you go. Keep the completed directory secure and let the appropriate people know how to find it.
Include the everyday details, too. Household bills, recurring payments and guidance for obtaining authorized access to digital accounts can help someone understand what needs attention. A written note or letter of instruction can provide helpful context, although it does not replace legal estate documents.
Share the Meaning Behind the Belongings
Some of the things that matter most to a family have little to do with their financial value. A piece of jewelry, a handwritten recipe or a box of photographs may carry a story that only you can tell.
You might write down those stories, talk about why certain belongings are meaningful or ask loved ones what they would like to know about your life. A personal letter can also be a place to share what you appreciate about someone or what you hope they will remember.
There can be real joy in having these conversations while you can enjoy them together. They give you a chance to share the meaning behind the things you have kept, and to hear what matters to the people you love.
Begin with One Step
If you already have a plan, consider what has changed since it was created. A new family member, a loss, a move or a change in relationships may be a reason to revisit your documents, beneficiaries or the people you have named to help.
If you are starting from scratch, choose one task: gather the documents you have, start your Estate Directory or arrange a conversation about your wishes.
Our hope is that estate planning can feel like a way to care for the people you love, even when the subject itself is difficult. The time you spend on these details can give them clearer guidance when they need it.
If you would like help getting started, our Fathom team can help you organize the financial pieces and coordinate with your estate planning attorney. Our Estate Directory offers a practical place to begin.