Your Will and Other Important Decisions to Make Now

Start writing your will now. Estate planning may feel uncomfortable because it addresses death, but it can also bring significant peace of mind.

Here are some final planning elements your family will appreciate you settling for them if you pass away.

The first step in estate planning is a will. A 2016 survey by Harris Poll for Rocket Lawyer found that 64% percent of American adults don’t have a will. Either they thought they didn’t need one, or they never got around to it.

This document is where you specify who you want to inherit your money and property, as well as other instructions. A will is also where parents can name a guardian to care for their young children. Without a will, any assets you own, such as a summer home, a car, or jewelry, will be subject to probate court proceedings. Even less-expensive items, such as Grandma’s knitted shawl, can cause a big headache.

Another option is a living trust. A trust transfers assets from your name to your beneficiaries. A living trust goes into effect immediately, whereas a will becomes active after your death.

It is critical to communicate your wishes to family and loved ones in the event you are unable to make medical decisions for yourself. Do you want to be resuscitated or kept on life support? Do you want to donate your organs? In a living will, a healthcare declaration exists, and a power of attorney states who will ensure your medical wishes are granted.

Document if you want a funeral. Do you want to have a burial or cremation? Some people who are terminally ill and die from complications from disease plan in advance. In this situation, you can arrange life insurance and prepay for funeral plots, years in advance. Other important details to address include asking yourself if you want a life celebration or another type of memorial service. Estimate the funeral cost. Are you a veteran? Do you have funds put aside for funeral costs?

These are just a few details to consider regarding end-of-life decisions. Although they may be hard to think about, they are important for you and your loved ones.

In addition to creating a will, trust, and outlining your end-of-life preferences, it is also wise to take a comprehensive inventory of your assets and digital accounts. Many people overlook the importance of organizing financial documents, insurance policies, retirement accounts, and even online passwords. Creating a secure, centralized record of this information can save your loved ones significant time and stress during an already difficult period. Consider using a password manager or encrypted document storage system to ensure sensitive information is both accessible and protected.

Another key component of estate planning is regularly reviewing and updating beneficiary designations. Accounts such as life insurance policies, retirement plans, and payable-on-death bank accounts typically pass directly to the named beneficiary, regardless of what is written in your will. Life changes such as marriage, divorce, the birth of a child, or the death of a loved one should prompt an immediate review of these designations to ensure they align with your current wishes.

Tax implications are also an important consideration. While many estates may not be large enough to trigger federal estate taxes, state laws can vary, and strategic planning can help minimize the tax burden on your heirs. Consulting with a qualified estate planning attorney or financial advisor can help you explore options such as gifting strategies or charitable contributions that may reduce estate taxes while supporting causes you care about.

Finally, open communication with your family is one of the most valuable steps you can take. While these conversations may feel uncomfortable, clearly explaining your decisions can prevent confusion, disputes, and emotional strain later on. Transparency ensures that your loved ones understand not only what you have decided, but why.