With so much going on in markets, it's easy to get caught up in the day-to-day and forget about all the other aspects of financial planning that are too important to miss. August also happens to be national ‘Make a Will Month,’ and in honor of the month, we’d like to bring everyone’s attention away from markets for a little bit, and remind readers to make sure their will, and overall estate plan, is fully up to date.

The will is the most essential component of your estate plan. It’s the starting point and primary document to provide for loved ones when we pass away. When done right, it should work hand-in-hand with the rest of your estate plan, as well as with the various trusts and planning strategies you’re employing.

If you are thinking that you should revisit and update your will, or if you need to make one for the first time, here are three considerations to reflect on before engaging with an attorney:

1. Think about what you own and who it will go to. Take an inventory of your property, including intangible property such as bank accounts, investments, and digital assets. Retirement accounts will be passed on by your beneficiary designation—this happens outside of the will and is critically important—and the named persons should be coordinated with your estate plan. Choose the people who will inherit the assets, and for most, it will be spouses, partners, family, and friends who will be named in a will.
2. Appointing an executor/executrix. This person is responsible for managing your estate and carrying out your intentions, based on how you express them in your will. This should be a trusted person, and a fiduciary, who will be responsible for paying debts, expenses, and taxes, if applicable. More importantly, this individual will also be in charge of marshaling assets and distributing them to family, heirs, and/or charity according to the will, while working with the probate courts in the process. Finally, think about also appointing a successor in case the original appointee is unable to act as executor/executrix.
3. Appointing a legal guardian for minor children. If there are minor children involved, this individual(s) would be responsible for caring for minor children until they become adults. Guardians can be appointed to manage a minor’s financial affairs in addition to caring for them.

• Bonus! Make sure you make a will! Without one, the alternative is called ‘intestacy,’ which means state law will determine how and to whom your estate will be distributed. Most are not comfortable leaving this responsibility to the state, it can lead to suboptimal outcomes. Instead, we all would rather self-determine what happens to our own affairs by creating a will.

After a will is created, it should be reviewed every 4 to 5 years (with or without the help of an attorney). Regular review should account for any personal life changes that may have taken place since the will was signed, as well as to ensure it will still accomplish your estate planning goals.

When making a will, it is also a good time to create a financial power of attorney, healthcare power of attorney, and living will. These documents, commonly known as advanced directives, address situations that may arise during our lifetimes when a person is unable to act on their own behalf regarding key financial or healthcare decisions.

Creating and updating your will is a necessary piece to having a successful estate plan, and in maintaining good financial wellness. The above list should be your starting point.

Building Your Legacy with an Estate Plan: A Guide for You and Your Family

For more, download our Estate Planning Guidebook, which includes planning recommendations for a variety of life stages and scenarios, a checklist to help you get started, and more.

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