We know that thinking about the end of life can be difficult. Life is busy, and it’s easy to put off getting your estate documents in place. Though the average life expectancy in the U.S. is 79.5 years, estate planning makes sure your assets are distributed according to your wishes and your loved ones are taken care of when the time comes.

As your trusted advisor team, our team at Treasure Valley Financial Planning is uniquely positioned to help you work through these complicated matters and create a plan that gives you peace of mind.

Why Estate Planning Matters

Having a plan in place will provide you with peace of mind, knowing that your family will have a roadmap to follow during an already difficult time. Without an estate plan, your assets may not be distributed the way you want, and your family may face unnecessary stress and confusion.

4 Key Components of Estate Planning

Let’s take a look at the four key components that are involved in the estate planning process.

1. Wills and Trusts

It’s estimated that about 67% of Americans don’t have an estate plan, which means over two-thirds of the country has no will to help direct matters after they die. A will is a legal document that outlines how your assets will be distributed after your death. It can also specify who will take care of any minor children.

Trusts, however, allow you to set conditions for how and when your assets will be distributed. Trusts can also help minimize estate taxes and avoid probate, which can be a lengthy and expensive process—often 12 to 18 months or longer.

2. Medical Directives

Medical directives, such as a living will, let you indicate your wishes for how medical care should be approached if you can’t speak out on your own behalf. This can include decisions about life support, resuscitation, and other critical care options.

To be upheld, your medical directive must meet the following criteria:

Must be documented in writing and include a date
Clearly identify your name
Require a signature from you or an authorized representative
Signature must be authenticated by a notary public or attested by two witnesses

These directives prioritize that your healthcare preferences are respected and can relieve your family from making tough decisions during emotional times.

3. Durable Powers of Attorney

A durable power of attorney is a legal document giving someone that you trust the authority to make financial and legal decisions on your behalf if you become severely ill or otherwise incapacitated. This person can manage your bank accounts, pay bills, and handle other financial matters. This keeps your affairs are in order even if you cannot manage them yourself.

4. Beneficiary Review

Regularly reviewing and updating your beneficiary designations on life insurance policies, retirement accounts, and other financial assets is essential. This confirms that your assets will go to the intended recipients without legal complications.

Life changes such as marriage, divorce, or the birth of a child can affect your beneficiary choices, so it’s important to keep these designations current.

Secure Your Future: Take the Next Step in Estate Planning

Estate planning may seem overwhelming, but it’s such an important step in securing your family’s future and making sure your wishes are honored. By addressing these key components—wills, trusts, medical directives, durable powers of attorney, and beneficiary review—you can create a comprehensive plan that provides peace of mind for you and your loved ones.

At Treasure Valley Financial Planning in Meridian, ID, we are here to help you through every step of the estate planning process. Our team of experienced advisors can provide the guidance you need to make informed decisions and create a plan that suits your unique needs.

Don’t wait until it’s too late—contact us today to start planning for your future and protect the ones you love.

An Introduction to the Basics of Estate Planning