Estate planning is about getting plans in place to manage risks at the end of your life and beyond.  No one wants to spend more time than necessary contemplating their mortality. But putting in the work now will save your loved ones from months or even years of arguments and legal hassles.

Help ensure your plan’s success with these six steps:

1. Make sure your estate plan says what you think it says. 

There is no single solution for estate plans, no “one-size-fits-all.” To be effective, your plan should be customized to meet your unique needs, but that doesn’t mean your attorney won’t still use some boilerplate language throughout, and that’s fine. The issue is when the language in your documents isn’t clear about – or is in conflict with – your desired outcome. And yes, this happens more than you might think.

In fact, we regularly conduct independent reviews of our clients’ plans to identify any problematic language, potential restrictions or ambiguous (or altogether missing) terms. Remember, when your plan activates, you won’t be able to offer clarification and it will be left up to your agent, or possibly the courts, to decipher your intent. Combing through your plan now eliminates this potential concern.

2. Review your successor fiduciary appointments.

One of the most important decisions you make in the estate-planning process is the selection of fiduciaries (a trustee, power of attorney, executor, or health care agent) who will represent you when you no longer can act for yourself. It’s safe to say that your plan’s success hinges heavily on your fiduciary’s ability to fulfill their role when the time comes, so a periodic review is a good idea.

You can start this part of your review by asking some questions:

• Does the person you named have the time and acumen to devote to the position? Are they proximately located near the assets?

• Will they be able to work quickly and efficiently through the processes needed to be accomplished?

• Are they comfortable with the liability involved?

• Can they be objective? Will they be? Will their appointment create a family conflict?

• The role of a fiduciary, such as a successor trustee, executor, or agent, can be a heavy weight to lay on someone. Make sure your agent is up for the job and understands your expectations.

3. Ensure your assets are properly titled. 

Much too often, we come across assets that the owners have not properly titled in the name of their trust. This can be because it was overlooked at the inception of the plan, or is the result of opening/changing accounts over time, and not paying close attention to how those accounts should be titled. For real estate, the deed has to be changed to reflect that the trust now is the owner. For financial accounts, you have to change the name of record with the custodian. That might mean applying to open a new account and then transferring the old account assets into the new account. Considerations regarding automobile registrations should also be made with your plan in mind.

None of these steps are difficult or expensive, but many people neglect to do them and the result is wasted time and money creating trust documents that don’t work. Your assets won’t avoid probate, and you won’t reap the other expected benefits of your estate planning.

4. Verify beneficiary designations.

For many people, naming beneficiaries happens only once, when they set up the account or policy. However, life changes (birth, marriage, divorce, death) are inevitable, and when these changes occur, you (or your family) may find that the designated beneficiary on your retirement account is not who it should be.

Review beneficiary designations on your life insurance policies, retirement accounts and any brokerage accounts that name a payable on death beneficiary. Any joint assets – such as a joint bank account – will pass automatically to the surviving joint owner; beyond that, you’ll need to be very clear about who gets what. We’ve seen estate plans undone with incorrect beneficiary designations – specifically, naming someone as a beneficiary and then providing “instructions” on what to do with monies. This rarely works out well. Do not rely on someone to “do the right thing” by your loved ones; distribute the assets the way you want them to be distributed.

5. Organize the vital, useful, and heartfelt information needed to effectively carry out your plan.

If you had an emergency, would anyone know what doctor to contact? Or what bank you use? We suggest that you securely create and share these vital details, and much more, with people who will need them. Include and organize important information,— Wills, Life Insurance policies, healthcare documents, pet information, digital accounts, (you get the idea) – and make sure your loved ones know this information exists and they know how to access it.

6. Consider preparing a letter of intent and/or heartfelt letter to your beneficiaries.

Estate planning documents are written in broad legal terms. Eventually, when your plan is implemented, there can be numerous interpretations of those terms. A letter of intent can help provide clarification with additional context regarding what you want these terms to mean. In other words, they can be an opportunity to document your thoughts, approach, and/or wishes, in layman’s terms.

Other personal touches you may want to consider include an ethical will or heartfelt letters to beneficiaries. These informal documents can have a meaningful impact on those you leave behind, providing them—and future generations—the opportunity to learn from you and remember your stories after you are gone.

At Santa Barbara Fiduciary, our planning process is about taking control of your situation and empowering you to feel and live confidently throughout life transitions. We provide a range of fiduciary services to help you protect your family and preserve your quality of life. Santa Barbara Fiduciary can give you peace of mind. Contact us today!