4 Strategies to Avoid an Estate-Planning Mishap
Even after you're gone, you can still help provide for the people and causes you care about.

What do Abraham Lincoln, Bob Marley and Prince have in common? (Besides being respected and beloved, that is.)
They all died without a will.
Why would such celebrated men—all with complicated family and business relationships, not to mention plenty of experts around to advise them—delay or avoid putting their last wishes down on paper?

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Their reasoning, no doubt, was the same as it is for most people: They were busy. They were caught up in day-to-day life. They didn't want to think about it or take the time to sit down and just do it.
People tend to overestimate both the time and effort that go into putting together a will. They also underestimate the problems that can result if they don't have a plan in place.
In my opinion, while you're likely to hear loads about income and investments, you may not hear about things like taxes, health care, asset protection and leaving a legacy for family, friends and charity. It just doesn't happen.
How can you help make sure your transfer of wealth goes smoothly when you die? Here are four basic strategies to discuss with a licensed attorney and your financial adviser to help you avoid an estate-planning mishap.
1. Make sure you have a simple will in place.
This is the first line of defense. A will dictates your wishes and how you want your assets distributed when you die. Most people think wills are expensive, but for not much money, you can have a licensed attorney design your will exactly as you want it.
2. Create a living trust.
This legal document can protect your assets and avoid the probate process. (A will doesn't necessarily do that.) A lot of people think they don't need a living trust, but it can help ensure your assets are managed according to your wishes, even if you are no longer able to manage them yourself. It puts in place your health care surrogate and your power of attorney—the people who will be making decisions about your physical and financial life.
Famous or not, a trust can help you maintain your privacy—something you'll lose if your documents and family squabbles end up in probate court.
3. Properly title your accounts.
At the very least, make sure you have a trust in place or a "transfer on death" designation (which allows assets to pass directly to the beneficiaries named by the owner). Without one of these titles, an individual investment account is in danger of going to probate. Even with a joint account, when the second person dies, the money is at risk without a title. Similarly, people often don't properly name beneficiaries and contingent beneficiaries on IRAs and other tax-qualified accounts.
4. Put life insurance into play.
Life insurance policies are used to provide a death benefit for your loved ones and can add to the legacy you wish to pass down.
These policies can help cover final expenses, of course, such as funeral, burial and medical bills. An IRA owner facing a required minimum distribution (RMD) who doesn't need the income and wants to leave that money to beneficiaries may want to consider using those RMDs to purchase a life insurance policy.
If you're contemplating buying insurance, you probably are at a stage in life when you should be thinking about all four of these strategies. So set aside time now — for yourself and for your family—and meet with a qualified financial adviser who can work in concert with a licensed attorney. Once your plans are in place, review them every few years or so.
Don't wait.
Because when you're planning for the future, it's not just about your money; it's also about where you want that money to go after you're gone.
C. Grant Conness is co-founder of Global Wealth Management), an Investment Adviser Representative at Global Financial Private Capital and insurance professional. He has passed the Series 7, 63 and 65 securities exams.
Kim Franke-Folstad contributed to this article.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

C. Grant Conness is the Co-Founder and Managing Director of Global Wealth Management (www.askglobalwealth.com), an SEC Registered Investment Adviser. He is the co-host of "The Global Wealth Show" airing on NBC, CBS, ABC and FOX. Grant is a regular Kiplinger contributor. He has been quoted in major publications such as "The Wall Street Journal." He currently resides in Fort Lauderdale with his wife, Jessica, and their four children.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
Technology Unleashes the Power of Year-Round Tax-Loss Harvesting
Tech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.