The Five Major Decisions of Every Estate Plan

Estate Planning is an essential component of your overall financial plan. It allows you to gain some control over aspects of your life both during your lifetime and after your death.

Five major decisions go into each estate plan. Those decisions are described below, along with examples and a description of people in your life that may be up to the task.

1. Beneficiaries

   This is WHO will get your assets when you pass away. Most often, if you have children, you will want to see to it that things go to your children in equal shares. However, there are also opportunities to leave things to charity or other loved ones.

2. Method of Distribution

   This is HOW your beneficiaries will get everything when you pass away. Depending on your beneficiaries' age and financial capabilities, you may wish to delay distributions to a beneficiary. You might name a trustee to provide for health care, education, and support before a beneficiary attains a certain age or other requirements. If you have a beneficiary with special health needs, you can leave assets for them through a special needs trust. Depending on your goals, there are various legal mechanisms and tools to carry out your wishes while providing flexibility for contingencies. See Will vs. Trust — Oakleigh Wealth Services for an overview of two of the main options.

3. Trustee/Executor/Financial Power of Attorney (and successors)

   This person (or people) will make financial decisions for you if you cannot. The type of person who makes a good trustee is someone who is financially responsible, would handle finances similarly to you, and is generally a good decision-maker. You can consider a professional trustee if you don’t have a family member or friend to choose from. Generally, 2-3 successors are named (in order of preference).

4. Health Care Power of Attorney

   This person (or people) will make health care decisions for you if you cannot. The type of person you name here would need to be able to make decisions during a difficult, emotional time. You will have the ability to state your end-of-life and organ donation wishes in this document as well. Generally, 2-3 successors are named in order of preference.

5. Guardian (if necessary)

   This is the person (or people) who will have legal custody of any minor children should you pass away. The guardian will work with the trustee to access funds for any minor children. We often see your parents, siblings, or dear friends named here. We also see other children you have who are over the age of 18 named here. Generally, 2-3 successors are named in order of preference.
   
   
   
   

Download our guide to naming individuals to serve in the most important estate planning roles