The Square Wealth Blog

Estate Planning Essentials

by Andrew Cook, CAIA | April 12, 2022

Perform a thought experiment: Travel to the future in your mind and be very honest with yourself about what is likely to happen and how people are likely to behave when it comes to handling your property, money, and dependents at the time of your incapacity or death. Now come back to the present and plan accordingly. A thorough estate plan describes your intentions as clearly and completely as possible so that others know your wishes if you become incapacitated or pass away. You will likely need several types of documents to cover all contingencies.

The following should be considered at the onset of your Estate Plan development:
‍You've spent a lifetime building your estate, so you'll want to take whatever steps you can to help ensure that it will be taken care of properly. Careful planning may be especially important to conserve your assets and minimize the effects of taxes. To do this, many people use trusts in their estate plans. Some trusts can be altered or even abolished by you if your needs change (revocable trusts). Other trusts cannot be changed in any way once they are implemented (irrevocable trusts).

‍Your Estate Plan requires a professional team approach. Creating and executing a proper Estate Plan can be a complex and daunting challenge. You’ll want to thoroughly address all contingencies to have true peace of mind knowing no stone has been left unturned, and nothing is left to chance. Engaging a team of professionals to help craft and manage your estate plan is the best way to achieve this. Sucha team usually consists of a Financial Advisor, an Estate Attorney, and a Certified Public Accountant. In addition, a Third-Party Estate Administrator/Fiduciary may be best to fill the role of an Executor or Trustee. A Financial Advisor is often best positioned to act as “quarterback” of this team, as they usually have the fullest picture of your financial and family life, and typically meet with you on a more regular ongoing basis