Are Your Affairs Really in Order?

Recently, I spoke to a woman’s group about estate planning and one thing became very clear. Many people believe their affairs are in order but continue to worry that something important was missed.

They may have a will, a life insurance policy, or a trusted family member who “knows what to do,” but remain unsure whether everything is organized enough for their loved ones to act quickly and confidently.

Estate planning is not only about wealth. It is about reducing confusion, stress, and conflict at a difficult time.

There are several steps you should take to make sure your estate prepared.

• Create a folder: A good first step is to create one central folder, both physical and digital, containing your key documents and information. This should include your will, power of attorney, health care proxy or advance directive, life insurance policies, bank and investment account information, deeds, vehicle titles, funeral preferences, passwords or password manager instructions, and contact information for your attorney, accountant, financial advisor, and insurance agent.

• Update beneficiaries: It is also important to make sure your beneficiary designations are current. Update beneficiaries after marriage, divorce, death of a loved one, birth of a child, or any major life change. Regardless of what is stated in your will, retirement accounts, life insurance policies, and certain bank or investment accounts often pass directly to the named beneficiary. Outdated information can cause unintended beneficiaries such as an ex-spouse, expensive delays in probate, family disputes and the loss of tax benefits.

• OTD and POD: A useful tool implemented for bank accounts or brokerage accounts includes POD or TOD. The designation POD (Payable On Death) means your beneficiary will automatically receive bank funds upon your death. TOD (Transfer On Death) is a legal registration used for property, brokerage and bank accounts where the asset transfers directly to the beneficiary. Both POD and TOD do not go through probate and supersede a will. Both should be integrated as part of your estate plan.

Probate is the court process of validating a will and authorizing someone to handle the estate. The length of time for probate varies depending on the state, the size of the estate, family disputes, creditor issues, and whether the paperwork is complete. If there are no beneficiaries listed on key accounts, those assets may have to pass through the estate, which can delay access and increase costs.

The best way to start is not to do everything at once. Begin by gathering documents. Then, list every account and policy. Next, confirm who is named as beneficiary. Finally, meet with a qualified estate attorney to make sure your plan matches your wishes.

The goal of estate planning is peace of mind. When your affairs are organized, you give your family one of the greatest gifts possible: clarity when they need it most.

Create your estate plan and preserve your legacy.