There are several elements to an estate plan that are key to your family being taken care of and your financial goals. For our Peace of Mind Planning, I referred to it as “What Tools Do You Have in Your Personal Tool Shed?”
Each component of a plan is like a tool designed to accomplish a specified task. You don’t use a hammer to attach a screw into a piece of metal equipment…although, some people in my family (who shall remain nameless to protect the guilty) have tried without success. 🙂
Once you take an accurate inventory of assets such as investments, real estate, businesses, insurance policies, retirement accounts, you have a good idea where to start. Then you need to figure out whom you want to inherit your assets after you pass. It’s also a good idea to decide who you would want to handle your financial affairs if you were incapacitated, and who you would want making medical decisions for you.
After you know the answers to those questions, you can start on your estate plan. An estate plan, is effective while you are alive, when you pass away, and if you become medically unable to manage your financial affairs. Typically a plan has four major elements:
About the Author
Chris served on the Board of Directors for Habitat for Humanity
Seattle/S. King County for 10 years and served as Vice President
of the organization during part of that time. Read More