Forward Bank

If you're like most people, protecting your loved ones is a top priority. However, many overlook or delay planning for the inevitable—death—leaving behind unnecessary stress, heartache, and expenses for those they care about. With proper estate planning, you can ensure that your family is cared for and that your assets transfer smoothly to your heirs. Estate planning is essential for everyone, regardless of age, marital status, or whether you have children.

Surprisingly, a recent survey by Caring.com found that only 32% of Americans have a will or living trust in place. Procrastination is the most common reason, while others believe they don’t have enough assets or think the process is too complicated. But the reality is that everyone, regardless of their financial situation, should have an estate plan, and the process is easier than ever.

To help you get started, here are six essential estate planning items to review.

If you already have a plan, ensure these elements are included; if not, use this checklist to create a solid foundation for your estate.

1. Will

A will outlines where your assets will go if no beneficiaries are listed. This can include your home, cars, collections, or other valuable items. Bank and investment accounts with no named beneficiary should also be included in your will and estate plan.

2. Trust Document

A living trust allows your assets to pass to heirs without going through probate, saving time and reducing stress. It also enables someone to manage your finances if you're unable to do so yourself. A trust document is a critical element of estate planning.

3. Executor of Your Estate

The executor handles your estate’s affairs after your death. This role is often filled by a trusted relative or friend, but in complex cases, you may need to appoint a professional. An executor's responsibilities can be time-consuming and stressful, so consider your options carefully.

4. Guardian for Minor Children

If you have young children, your estate plan must designate a guardian to care for them in the event of both parents' deaths. Without this, the state decides who will be their guardian. Planning for children with special needs requires additional considerations to ensure their long-term care.

5. Medical Power of Attorney

This document appoints someone to make medical decisions on your behalf if you become incapacitated. Spouses often choose each other, but you have full discretion to appoint anyone you trust.

6. Financial Power of Attorney

A financial power of attorney allows someone to manage your finances if you're unable to do so. This ensures your bills are paid and assets managed, especially during extended medical care. Without this, the state may seize and liquidate assets to cover expenses, even if you have sufficient funds.

While these six items form the foundation of a solid estate plan, additional documents may be necessary depending on your personal situation. Our financial team is here to work with your legal and tax professionals to ensure your estate plan meets your specific needs.

Don’t leave your legacy to chance. Contact us today with any questions or to schedule a meeting to start your estate planning journey.