A Guide to Creating a Complete Estate Plan

May 7th, 2024
Posted By
Sarah M. Litowich
Office file folder with a tab that reads
Although most people know that they should have a last will and testament in place, they may not realize that a complete estate plan can include various other documents to help them accomplish their objectives. Importantly, several tools can be used to ensure your wishes are carried out after your passing and in the event of incapacity. Regardless of the size of your estate, having a plan in place can minimize your estate taxes, financially protect your loved ones, and distribute your assets to your chosen beneficiaries — rather than let Oregon’s intestate law decide the outcome. Here are the basic steps you should take when it comes to creating a complete estate plan:

Work with an Experienced Estate Planning Attorney

Estate planning is much more than simply executing documents — the measures you take in planning ahead can have long-lasting legal and financial implications for you and your family. Significantly, the first step in creating a complete estate plan is to consult with a knowledgeable estate planning attorney. They can discuss your unique family situation, explain the estate planning process, and determine the specific documents you will need to meet your goals. When it comes to estate planning, you should never rely on boilerplate documents. An experienced estate planning attorney can customize the process for you, draft valid documents, and ensure the necessary legal requirements are satisfied. With their deep knowledge of the law, they can advise you regarding your options, help you avoid probate, and reduce the tax burden on your family.

Take Inventory of Your Assets, Property, and Liabilities

Every piece of property you own is considered part of your estate, and taking inventory is a crucial step in knowing how to safeguard your assets for your loved ones. Compile a list of your property, including liquid assets, real estate, personal property, business interests, and any miscellaneous property. You should also gather your bank and financial statements, make a list of all insurance policies, and note all liabilities. After you have determined the property you own, you must decide who will receive what — and the estate planning tool you will use to pass the property to them. The beneficiaries you choose can depend upon a variety of factors, including your relationship with the individual, their age, their ability to handle money, and your wishes. Not only can you choose a loved one as a beneficiary, but you can also name a charity as a primary or contingent beneficiary.

Prepare Your Last Will and Testament

Your last will and testament is the foundation of your estate plan and should be customized to meet your specific needs. This document specifies how you wish to distribute your property when you pass away and who will be your executor. In your will, you can also designate a guardian for any minor children. It’s essential to understand that there are several legal requirements when it comes to drafting a will. Anyone over the age of 18 who is of sound mind can create a will in Oregon. To be legally valid, the document must be in writing and signed by two witnesses. Once you have executed your will, it’s essential to review it from time to time — or when major life events occur — to ensure it still reflects your wishes.

Consider Using Trusts

A will isn’t the only estate planning tool that can be used to transfer property when you pass away. A complete estate plan may also include a variety of trusts to help you accomplish your goals. Trusts can avoid the probate process, transfer assets to your loved ones, and preserve your wealth. In addition to distributing your assets after death, a trust can also allow you to maintain control of your assets during your lifetime. Trusts have a number of benefits — including minimizing estate taxes and controlling how your assets are distributed. Since these tools avoid probate, they can help ensure your financial affairs remain private and do not become part of the public record. A wide array of trusts can be used, depending upon your objectives, including revocable and irrevocable trusts, special needs trusts, pet trusts, and charitable trusts.

Put a Plan in Place for Incapacity

An estate plan shouldn’t only establish what will happen to your property after your death. You should also have a plan in place for incapacity in the event you become ill and are unable to make decisions on your own behalf. While a last will and testament is only applicable upon your passing, an incapacity plan becomes effective while you are still alive. The incapacity documents in a complete estate plan can include the following:
  • Advance healthcare directive
  • Medical power of attorney
  • Financial power of attorney
  • Living will
  • HIPAA Authorization
  • Revocable living trust
No matter how old you are, or your health condition, the unexpected can occur at any time. It’s imperative to have a plan in place to ensure those you wish to make decisions on your behalf have the authority to do so in the event of incapacity.

Contact an Experienced Oregon Estate Planning Attorney

Without having a complete estate plan, a court might be required to determine who will receive your property — or make your healthcare and financial decisions if you become incapacitated. It’s crucial to work with an experienced estate planning attorney to ensure your wishes are met. Based in Salem, Litowich Law provides clients throughout Oregon with skillful counsel for estate and incapacity planning matters. We welcome you to contact us to schedule a consultation to learn how we can help.
Categories: Estate Planning