Estate planning: a matter of control

You might associate estate planning with famous people you see in the news. In fact, estate planning could be appropriate for everyone.

Consider your assets: bank accounts, investment accounts, 401(k) or 403(b) plan accounts, house, cars, jewelry, and heirlooms. This is your estate and your estate plan can define what you would like to happen to these assets when you die.

An estate plan can also take care of you as you get older or if you become ill or incapacitated. Being wealthy has little to do with it.

If you don’t make a plan the state may be required to decide how your assets should be distributed upon your death. Additionally, the transfer of your wealth may become a public matter. Those who are curious may be able to learn what you left behind and what went to whom. Further, probate entails legal expense and can delay the transfer of funds to loved ones for an extensive period of time.

Five essential documents

These five documents are often essential to an estate plan:

• Will - Instructions for distributing your assets when you die. You will name a personal representative (executor) to pay final expenses and taxes and distribute remaining assets. Name a guardian to raise your minor children if both parents die.
• Durable power of attorney – You give a trusted individual management power over your assets if you can’t manage them yourself. This document is effective only while you’re alive.
• Health care power of attorney - You choose someone to make medical decisions on your behalf if something were to happen and you can’t make them yourself.
• Living will – Shares your intentions about life-sustaining medical measures if you are terminally ill. No one is given authority to speak for you.
• Revocable living trust - You can provide for continued management of your financial matters while you are alive, after your death, and even for generations after.

Beneficiary designations matter

The assets in one’s estate can avoid probate if titled correctly. Probate can also be avoided when an opportunity to name a beneficiary is provided by the institution offering the account and seized by the account owner.

However opportunities to name beneficiaries are sometimes missed, creating the legal presumption that the account owner had no desire to name a beneficiary. This can result in account assets becoming subject to probate. Additionally, outdated beneficiary designations can result in bequests made to individuals that the account owner no longer wishes to benefit (such as an ex-spouse). For these reasons it is important to periocically review the titles used on your accounts and your beneficiary elections. We can help with this.

Turn to a team of professionals

Making the decisions involved with estate planning may seem overwhelming. It doesn’t have to be. You can start by organizing your important documents.

Turn to a team of trusted professionals, including your financial advisor, an estate planning attorney, and your accountant. They know the questions to ask and can help you avoid potential pitfalls.

If you currently don’t have relationships with an attorney and an accountant, we can make some recommendations. We can also discuss our role in the planning process and how you can get started.



Trust services are available through Wells Fargo Bank, N.A. Member FDIC and Wells Fargo Deleware Trust Company, N.A.

Wells Fargo Advisors and its affiliate do not provide tax or legal advice. Please consult with your tax and/or legal advisors before taking any action that may have tax and/or legal consequences. Any estate plan should be reviewed by an attorney who specializes in estate planning and is licensed to practice law in your state.