Did you know that if you don’t have an estate plan, the State of Washington has one for you?
It’s true. If you pass away without a plan for your estate outlining your wishes in a will or trust, the state’s intestacy laws determine who receives your assets.
That means your hard-earned legacy may be distributed among your spouse and children (equally) or, if you have neither, your parents or siblings. In some cases, your assets could even end up with distant relatives you’ve never met. If that outcome works for you, there’s nothing more you need to do.
But most people want a say in who inherits their legacy.
And while it may feel uncomfortable to think about, the reality is that we will all pass someday. We just don’t know when. Planning ahead allows you to live fully now, knowing your affairs are in order.
Whether your estate includes cash, a home, a vehicle, retirement accounts, investments, or a business you’ve built from the ground up, having a clear plan gives you control over how those assets are passed on.
At WE Trust Company, we’ve served as Personal Representative for hundreds of estates. Based on that experience, here are key steps you can take today to get your estate in order, and make things easier for the people you care about.
What Steps Should You Take to Plan for Your Estate Today?
- Consult with an estate planning attorney.
This is the best place to start. We often hear, “Attorneys are so expensive!” But the long-term cost of not having a plan, financial and emotional, can be far greater and may leave less for your heirs. - Make a list of all your financial assets and their approximate values.
Your attorney will need this information to design an estate plan that fits your specific needs. - Review and simplify your financial accounts where possible.
If you can streamline your finances without affecting your goals, do it. The more accounts held at different institutions, the longer it typically takes to settle an estate. A simplified financial picture means a smoother process for your loved ones. - Discuss family dynamics with your estate planner.
Every family has its complexities. Your planner needs to understand yours to avoid potential conflicts, such as naming children who don’t get along as co-trustees or co-executors. In many situations, a neutral third party is the best choice. - Consider your personal property.
A lifetime of belongings can slow down the process of settling an estate and lead to extra costs. Donate or give away what you no longer need. For special items, consider gifting them now or creating a tangible personal property list to accompany your will. - Write a letter to your loved ones.
Alongside your will or trust, a personal letter explaining your decisions, such as why certain people were chosen to receive particular items. This can reduce conflict and provide clarity during an emotional time. - Review your plan every 3 to 5 years.
Life changes and your plan should evolve with it. Regular updates help ensure your wishes remain accurate and relevant. - Don’t let the process overwhelm you.
Estate planning can feel daunting but remember: perfect is the enemy of good. Even a work-in-progress plan is far better than having no plan at all.
The best way to begin is simply to start.
The New Year offers a perfect opportunity to reset your priorities and bring fresh energy to your goals. Taking the first step toward securing your legacy will give you peace of mind so you can focus on enjoying the time you have right now.
Let this be the year you put your estate plan in place.