When it comes to estate planning, many people focus on creating a will and revocable trust. While these are undoubtedly essential documents, they are not the only ones you need to protect your assets. Another critical factor in estate planning is implementation – making sure all of your estate documents are signed and that all of your beneficiary designations and titling match up with your dispositive plan. If they don’t, you could run into some major problems after you die. This blog post will discuss what implementation entails and why implementation, the third of the 5-Step Modern Estate Planning Process™, is so essential for estate planning purposes.
One of the most critical aspects of implementation is titling. This refers to how your assets are titled in your name. For example, if you have a bank account, it will be titled in your name alone or perhaps in joint tenancy with someone else. Your home will also be titled in your name – either as a sole owner or joint owner. It’s essential to ensure that your asset titling matches your estate plan. If you have named specific beneficiaries in your will or revocable trust, you’ll want to ensure that those same beneficiaries are designated on your asset titling. Otherwise, the assets could end up going to someone else entirely.
Another critical part of implementation is reviewing your beneficiary designations. This includes things like life insurance policies, retirement accounts, and annuities. With these types of assets, you typically name a primary and secondary beneficiary – someone who will receive the asset if you die. Keeping these beneficiary designations up-to-date is essential, as they take precedence over your will or revocable trust. If you have named someone as a beneficiary on one of these accounts and then later change your mind, be sure to update the designation accordingly.
Finally, implementation also entails signing all of your estate documents. This includes your will and a revocable trust, and any Power of Attorney documents you may have. If you have named someone as your Power of Attorney, they will have the legal authority to make financial decisions on your behalf if you become incapacitated. As such, it’s essential to choose someone you trust implicitly and who will act in your best interests.
The implementation may seem daunting, but it’s crucial for estate planning purposes. By titling your assets correctly, updating your beneficiary designations, and signing all of your estate documents, you can help ensure that your wishes are carried out after you die. If you have any questions about implementation or estate planning in general, speak with an experienced attorney who can advise you further. Thanks for reading!
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