Estate planning should be approached in the same manner as you would approach any other important decision in your life. Below is an overview of the steps that should be followed with regard to establishing and maintaining an estate plan that works. A detailed description of each step can be found by following the links provided for each step.
- Determine Your Need for an Estate Plan
When considering an estate plan, the first step that you need to take is to determine if you actually need a plan. This can be done by assessing your current family situation and financial status to see if you fall into one or more of the groups in need of an estate plan.
- Find a Qualified Estate Planning Attorney
Once you have determined that you need an estate plan, the next step is to find and hire a qualified estate planning attorney. This is absolutely one place in your life where you should not skimp. In other words, this is no time for self help -- go out and get yourself a qualified estate planning attorney. Using the internet or do-it-yourself books simply should not be considered because the legal ramifications of one wrong word or paragraph or one missing signature are too great.
- Build Your Foundational Estate Plan
Once you have located and hired a qualified estate planning attorney, the next step is to work with your attorney to build your foundational estate plan. Depending upon your situation, the foundational plan will include four or five essential estate planning documents and the funding of your revocable living trust.
- Assess Your Need for Advanced Estate Planning
Once your foundational plan is up and running, the next step is to work with your attorney to determine if you are in need of more advanced estate planning. Sometimes this step can be combined with building your foundational plan, however, for some people putting together their foundational plan is so overwhelming that they will need to separate steps 3 and 4.
- Maintain and Update Your Estate Plan
Once your foundational plan is up and running and any advanced planning is in place, you should not shove your plan in a drawer and forget about it. Instead, each year or every few years you should take a fresh look at your estate plan to determine if it still meets your needs or requires changes.
