Beginning the Process for a Successful Estate Plan

When clients come to me for estate planning, they often struggle to know where to begin.  With the internet, social media, and now artificial intelligence, there is an overabundance of information available on estate planning.  What should you focus on and what is useless white noise?

Now that summer is over and the kids are back at school, this is an excellent time to take a breath and think about your estate planning.  Below is a set of questions and answers that are designed to help you focus on the important things and start the process of getting your affairs in order.

What should I do before meeting with an estate planner?

Before going to see an estate planner, you should compile basic information regarding your family, the people or entities you want to give to, and your assets.  Some attorneys use questionnaires to facilitate the gathering of this information.  If people request a questionnaire of me, I am happy to provide a basic form for that purpose.  It is also fine to simply write out the information on a couple of sheets of paper and bring that with you to the first meeting.

What information should I compile?

You should list the members of your immediate family, the members of your extended family which you would like to make gifts to, the friends you would like to remember, and any charitable entities that you wish to provide for.  In addition, you should compile a list of all your assets with their values and how they are titled.

What information is needed for those I want to give to?

For the family members, friends, and charities you would like to give to, you should have their full name as it should appear in any legal documents, their address, and their phone number.  For individuals, it is also helpful to have their age and to note whether they have any sort of disability.  People often ask whether social security numbers are necessary, and the answer is no.  When it comes to charities, you should note whether you wish to give to a local chapter or the national organization, if there is one.  It is also helpful to think about whether you want to designate the funds given to the charity for a particular purpose.

What information is needed regarding my assets?

As I noted above, you should get together the information regarding the values of all your assets and how they are titled.  You should not worry about getting precise values – estimates are fine.  Approximate values for real estate from an internet source like Zillow will suffice, or you can use your own estimate based on what you know has sold in your area.  Similarly, you need not provide values for monetary assets down to the penny.  It is important, however, to determine how the assets are titled.  Are they held by one person?  Are they held jointly with someone else?  Are they payable to a named beneficiary, like an IRA or life insurance?  If you are not sure on some of these questions, just provide what you do know, and the estate planning attorney can help you figure out the rest.

After I get this information together, what is the next step?

The next step would be to schedule a meeting with an estate planning attorney to discuss your wishes.  Most first meetings are in person, however if phone calls or Zoom conferences are preferable given your schedule, then such arrangements can likely be accommodated.

What will be discussed at the first meeting?

The attorney will likely go over what you have compiled regarding your family, who you would like to make gifts to, and your asset information.  There will likely be the need for some clarification and follow-up based on that initial meeting.  For example, the attorney may ask you to confirm with a financial institution that the beneficiary of a retirement account is in fact who you think they are.  As another example, the attorney may obtain a copy of a deed to make sure the real property you have is titled consistent with your wishes.

Will we discuss what documents are needed for the estate plan?

Yes.  The attorney will ask what documents you have in place now.  If you have copies of those documents, it is advisable to bring them with you.  Depending on their complexity, the attorney may be able to review them with you at the meeting or may need additional time to examine them and report back.  After reviewing what you have in place, if anything, there can be a discussion about what your goals are and what documents could be drafted and steps taken to accomplish those goals.

What types of documents will be discussed?

Typically, you will discuss whether a Last Will and Testament or a Trust would be advisable.  Those are the two main estate planning documents which will determine the disposition of your assets after you pass away.  Those documents are not mutually exclusive, it may be appropriate to have both a Will and a Trust, based on your circumstances.  In addition, you would likely discuss the need for a Power of Attorney, Health Care Proxy, and Living Will.  Sometimes those last two documents – Health Care Proxy and Living Will – are combined into one.

What else will be discussed?

You would also discuss the status of your assets that will pass outside of any Will or Trust, such as assets you hold jointly with someone else or assets that are payable to a named beneficiary.  An example of a joint asset would be a house you own with your spouse.  An example of an asset payable to a named beneficiary would be an Individual Retirement Account (IRA).

What happens after the initial meeting?

After the initial meeting, the attorney will make a recommendation for your estate plan, based on your goals and the information you have provided.  If you find the plan acceptable, then you can retain the attorney to represent you and move forward with the plan.

As with most things, knowing how to start the process is the first step.  Hopefully this review of the initial steps will help you on your way to crafting a successful estate plan.

Matthew J. Dorsey, Esq. is a Shareholder with O’Connell and Aronowitz, 1 Court Street, Saratoga Springs, NY. Over his twenty-seven years of practice, he has focused in the areas of elder law, estate planning, and estate administration. Mr. Dorsey can be reached at (518)584-5205, mdorsey@oalaw.com and www.oalaw.com.