Life Happens... Are Your Estate Documents Established and Current?

Life transitions often take us by surprise. If you could take steps now to reduce stress for yourself or your loved ones, would you? Having suitable estate documents in place prior to a life event gives you greater control over financial and medical decisions, as well as how your assets are passed on. Yet, because estate planning feels important but not urgent, it’s easy to put off until it’s too late.

This article highlights key reasons to prioritize establishing or updating your estate documents and how your advisor can help guide you through the process.

Why Estate Documents are Needed

There are many compelling reasons to establish and maintain estate planning documents. Here are some examples:

• Ensure decision-making support during incapacity. A Power of Attorney allows you to designate who will make healthcare and financial decisions on your behalf if you become incapacitated.
• Ease the decision-making burden on your family. Clearly outlining your end-of-life and after-death wishes can reduce stress and prevent conflict among loved ones.
• Provide family access to funds. Proper planning helps ensure your family can access the resources needed to settle your estate and cover immediate expenses.
• Protect your spouse. Estate documents can ensure your surviving spouse is left with sufficient financial resources.
• Plan for minor children. By naming designated guardians for children under 18 years of age, ensures financial support in the event both parents are deceased.
• Control asset distribution. Naming your heirs and specifying the distribution of assets after your death allows you to retain control over your legacy. In some cases, creating a trust may be advisable.
• Minimizing probate. Without estate documents, the probate court determines how your assets are distributed, a process that can be lengthy, public, and may not reflect your wishes.
• Reduce tax exposure. Estate documents can be crafted to help minimize estate taxes. If this is a priority for you, please discuss with your advisor or certified public accountant about options.

Why Updating Estate Documents is Important

Establishing estate documents is an essential first step, but do not allow them to become stale. Outdated documents can lead to unintended consequences. We recommend reviewing your estate plan and updating documents at least every five years, or sooner if your circumstances change.  Several common life events or legal developments may require updates to your estate documents, including:

• Changes in the law that affect estate taxes, probate procedures, or other relevant regulations.
• Changes to family composition such as births, deaths, marriages, or divorces.
• Shifts in your intentions, including how you wish your assets to be distributed or who you want to serve as decision-makers.

Our Role in the Process – How We Can Help

Your Apella advisor can support you as you establish or update your estate documents. Here are some of the ways they can assist:

• Modelling estate distributions within your financial plan and reviewing their potential impact.
• Explaining how assets pass to heirs based on account titling, beneficiary designations and your current or future estate documents.
• Summarizing your financial accounts and balances to assist your estate attorney in drafting or updating your documents.
• Facilitating discussions with your family members and/or your estate attorney ensuring alignment and understanding.

Estate planning is one of the most meaningful steps you can take to protect your loved ones and ensure your wishes are carried out. Whether you are starting from scratch or reviewing an existing plan, now is a great time to take action. If you would like to review your current estate plan or explore potential updates, please reach out. Your Apella advisor is here to help you through the process!

Disclosures:

Apella Capital, LLC (“Apella”), DBA Apella Wealth is an investment advisory firm registered with the Securities and Exchange Commission. The firm only transacts business in states where it is properly registered or excluded or exempt from registration requirements. Registration with the SEC or any state securities authority does not imply a certain level of skill or training. Please note the material is provided for educational and background use only. Moreover, you should not assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice.

No current or future client should assume that any discussion or information contained in this material serves as the receipt of, or as a substitute for, personalized investment advice. As with any investment strategy, there is the possibility of profitability as well as loss.