7 Steps for Getting Started on Your Estate Plan

May 19, 2025  |  William F. Huefner

With tax season behind us, now is the perfect time to turn your attention to another important aspect of life planning: your estate plan. Estate planning can seem daunting, but it’s a crucial step in ensuring your wishes are honored and your loved ones are protected.

Follow along with us as we provide some initial steps to help you begin the process.

1. Understand the Basics

At its core, estate planning is about making decisions now concerning what happens to your assets after you pass away. This involves several key components:

  • Will: A legal document that outlines how you want your assets distributed after your death. Wills are only used if your estate is subject to a probate court proceeding.
  • Trusts: Legal arrangements that hold assets for the benefit of someone else, often used to avoid estate taxes and a probate court proceeding.
  • Financial Durable Power of Attorney: Designates someone to make financial decisions on your behalf if you become incapacitated.
  • Advanced Health Care Directive: Specifies your wishes regarding medical treatment if you are unable to communicate.
  • Beneficiary Designations: Designate who will receive specific assets, such as life insurance policies and retirement accounts.

2. Take Inventory of Your Assets

Before you can decide how to distribute your assets, you need to know what you have. This includes:

  • Real Estate: Homes, land, or any other property you own.
  • Financial Accounts: Checking, savings, brokerage, and retirement accounts (401(k)s, IRAs).
  • Investments: Stocks, bonds, and mutual funds.
  • Personal Property: Vehicles, jewelry, artwork, and other valuable items.
  • Life Insurance Policies: Include the policy details and beneficiary designations.
  • Business Ownership: If you own a business, you should consider how succession planning will factor into your overall estate plan.
  • Digital Assets: You may want to ensure someone has access to your passwords for digital files and social media accounts.

3. Determine Your Beneficiaries

Who do you want to inherit your assets? This is a fundamental question in estate planning. Consider:

  • Spouse: How much do you want your spouse to inherit?
  • Children: How will assets be divided among your children? Do any of your children have specific needs to consider?
  • Other Family Members: Do you want to include parents, siblings, or other relatives?
  • Friends: Are there close friends you wish to include?
  • Charities: Do you want to leave a portion of your estate to a charitable organization?

It’s also crucial to name contingent beneficiaries, who will inherit if your primary beneficiaries are no longer living.

4. Choose Your Fiduciaries

Estate planning involves selecting individuals to manage your affairs in a variety of contexts:

  • Executor/Personal Representative: The person who will administer your estate according to your will.
  • Trustee: The person who will manage any trusts you create.
  • Attorney-in-Fact: The person you designate in a Financial Power of Attorney to make financial decisions on your behalf.
  • Health Care Agent: The person you appoint in a Health Care Directive to make medical decisions for you.

Choose individuals you trust and who are capable of handling these responsibilities. You should also discuss your wishes with them beforehand to ensure they understand and are willing to serve.

5. Consider Your Specific Circumstances

Your estate plan should reflect your unique situation. Here are some factors you may need to consider:

  • Family Structure: Do you have a blended family? Are there minor children or dependents with special needs?
  • Business Ownership: Do you need a business succession plan?
  • Tax Implications: How can you minimize estate taxes when passing your inheritance on to your beneficiaries?
  • Long-Term Care: Have you planned for your own potential long-term care needs?

6. Write Down Your Wishes

As you’re thinking about all of this information and gathering up documents, it can be helpful to write down your thoughts and goals for your estate plan. This doesn’t have to be a formal legal document, but it can provide a roadmap for yourself and your attorney when crafting the real thing. Include details about your assets, beneficiaries, and chosen fiduciaries.

7. Seek Professional Assistance

Estate planning is complex. While these initial steps can help you get started, it’s essential to consult with an experienced estate planning attorney. An attorney will help you consider all aspects of this process, including planning for your own future and that of your beneficiaries. An attorney will also ensure that your documents are legally sound and tailored to your specific needs and goals.

At Barna, Guzy & Steffen, we understand the importance of comprehensive estate planning. We are here to help you navigate this process and create a plan that provides peace of mind for you and your loved ones. Contact us today to schedule a consultation.