Plan

Estate planning โ€”
why it's important

Your future, your vision: Start planning today

Looking out for the people you care about belongs on your financial to-do list, no matter where you are in life and how much you own.
What would you like the power to do?ยฎ
The basics  tab 1 of 3  selected Essential documents  tab 2 of 3 Getting started  tab 3 of 3
The basics

What is an estate plan?

At its most basic, an estate plan is a collection of legal documents that puts you in charge of how to protect and control what you own or care about in the event you die or become incapacitated. It spells out key details of how to distribute your assets to loved ones and causes you care about in addition to naming who can oversee your healthcare and finances if you cannot.

Financial assets include:

Item 1 of 4: Bank and investment accounts
Item 2 of 4: Retirement plans such as 401(k)s and IRAs
Item 3 of 4: Life insurance and annuities
Item 4 of 4: Personal assets like a home, car and jewelry

Why create an estate plan?

The idea that estate plans are exclusively for the wealthy is widely held, but once you own even one asset or have a single person who depends on you, planning for the "what ifs" is increasingly important, no matter your age or net worth.
Click through these potential benefits of having an estate plan.
Item 1 of 4  selected

Greater control

An estate plan documents how your assets should be distributed, who will be the guardian of minor children, and who can oversee your healthcare and finances if you are unable to. Not having a plan gives those decisions to others

Consider this

Life's unpredictable. Putting an estate plan in place today ensures your wishes will be honored and your loved ones will be protected, giving you invaluable peace of mind. Merrill can help. Our advisors can work with you and your attorney or other professionals to get started.
Essential documents

What documents make up an estate plan?

While estate plans can be more complex, every plan should include three key legal documents โ€” and sometimes a fourth.
Item 1 of 4:

Will

This is the road map for ensuring that after you die your intentions will be carried out per your wishes. Here you can name an executor as well as your beneficiaries opens in a new tab. Be sure your will matches the beneficiaries selected for your financial accounts. If they don't, those beneficiary designations will prevail.
Close for less information about wills
Consider this 
A state probate court will determine how your estate will be distributed if there's no will. If family members dispute the court's plan, probate can be long, expensive and acrimonious. Without a will that names a legal guardian for minor children, the decision of who will take care of them in the event of your death will also fall to the courts.
Item 2 of 4:

Health care proxy

This medical power of attorney lets you authorize someone to make decisions about your medical care or communicate your wishes if you're unable to do so. To guide this person, you can spell out your preferences for pain management, surgery, organ donation, and more.
Item 3 of 4:

Power of attorney

This allows you to designate someone you trust to handle your finances if a health issue prevents you from doing so. No matter how much you own, having someone who can manage your assets โ€” or apply for benefits on your behalf โ€” can help avoid problems.
Item 4 of 4:

Trust

This financial vehicle can simplify and speed up the process of settling your estate, make it easier for loved ones to access your accounts if you are incapacitated and provide greater control over asset distribution. So you may want to add a trust opens in a new tab to your estate plan.
Getting started

How to get started with the estate planning process

Once you are ready to create your estate plan, these are the steps you can take to make it happen.
Previous step of 5 Next step of 5
Step 
Step 
1  of 5: Write down what you own

Write down what you own

Step 
Step 
2  of 5: Document your debts and ongoing bills

Document your debts and ongoing bills

Step 
Step 
3  of 5: Talk with loved ones

Talk with loved ones

Step 
Step 
4  of 5: Draft key documents and select beneficiaries

Draft key documents and select beneficiaries

Step 
Step 
5  of 5: Create a plan for digital assets

Create a plan for digital assets

Tip

The language โ€” beneficiaries, power of attorney โ€” may be unfamiliar and even intimidating. Talking to family members and friends about what they've done to create an estate plan can be helpful in getting comfortable with the topic.

Keep your plan up to date

Once your estate planning documents are in place, it's important to revisit them every five years, or whenever you experience a major life event, like the birth of a child, an inheritance, a marriage or divorce, or retirement. Ask yourself: Does my plan still accurately reflect my wishes and where I am in life?

Reasons to revisit your plan:

Item 1 of 5: Major life events
Item 2 of 5: Increase in value of assets
Item 3 of 5: Rollover of 401(k) into IRA
Item 4 of 5: Legal or regulatory news
Item 4 of 5: Change in relationship with people named

Have questions?

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This publication is designed to provide general information about ideas and strategies. It is for discussion purposes only since the availability and effectiveness of any strategy are dependent upon your individual facts and circumstances. Always consult with your independent attorney, tax advisor, investment manager, and insurance agent for final recommendations and before changing or implementing any financial, tax, or estate planning strategy.

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