5 Tips to Start Your Estate Planning Today
No matter your age or financial situation, you need to be financially prepared for the inevitable.
Estate planning can seem daunting and overwhelming. It may even conjure up negative emotions for some. Perhaps that's why an estimated 64% of Americans don't have a will or any type of estate plan in place. Unfortunately, that means a majority of the population is at risk of leaving their families or business partners a great deal of work should anything happen to them. This includes seeking out documents, hiring lawyers and involving the court system to sort through all that is left behind.
While it may seem easier to neglect taking responsibility and let things fall through the cracks, estate planning is essential for everyone, regardless of your age, family ties or business situation. Putting a plan in place can ensure your assets are properly handled and family members are taken care of should something happen to you.
Below are my five recommendations on what you can do today to get your estate in order:

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.
Start Early
Many people are under the assumption that estate planning doesn't begin until later in life, perhaps close to retirement. The reality is that—similar to your overall financial plan—the process should begin during or near your 30s. Life is unpredictable, and having your plan in place earlier in life will not only ease your mind but the minds of those around you. Then, you can (and should) update things over the years, ensuring your assets are always accurately allocated.
Identify Key People
As you kick off the process, consider the people you'd like to include in your plan. This can range from key family members and friends to important business partners. This may be especially important if you are a small business owner and can fall into your succession planning. Once you identify your people, determine how the assets will be distributed between them, as well as who will be handling all the necessary paperwork. Also, ensure you check beneficiary designations on key accounts and documents, including retirement accounts, life insurance policies, etc.
Consider Qualifying Estate Items
When reviewing your portfolio, ensure you are taking every valuable item into consideration. These items can include real estate (your personal residence), entities (small businesses, corporations, LLCs, etc.), investment accounts and life insurance. Once you have taken a look at your entire estate, you can begin listing out these individual items and placing them into specific categories.
Be Specific
As your family will not be in the position to ask you questions, it's essential that your plan is accurate and as detailed as possible. This includes leaving your family or colleagues a list of online accounts and passwords, location of important documents and assets, as well as any potential contingencies for the receiving parties (i.e. can the item be sold, age restrictions, etc.).
Share Documents
Don't just stick your estate planning documents in a file cabinet and forget about them. Instead, provide copies to your trusted loved ones and professionals. If something were to happen to you, it's important that your documents are easily accessible to those who are closest to you. Along with copies of wills, trusts and beneficiary forms, you might also consider sharing a secured list of usernames and passwords with a family member or two that you trust. For enhanced security, consider using a password manager such as Dashlane or LastPass to store this information and share it with others as necessary.
While putting together an estate may not be a top priority for many, most people have an idea of how they'd like their assets allocated should something happen to them. The sooner you put a plan in place, the better. And, as is the case with any financial plan, an estate plan should be reviewed and updated, as needed based on life situations, including marriage, birth of a child, death of a spouse or new business venture.
See the original version of this article at www.definefinancial.com.
Taylor Schulte, CFP®, is founder and CEO of Define Financial, a San Diego-based fee-only firm. He is passionate about helping clients accumulate wealth and plan for retirement.
Get Kiplinger Today newsletter — free
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.
Taylor Schulte, CFP®, is founder and CEO of Define Financial, a fee-only wealth management firm in San Diego. In addition, Schulte hosts The Stay Wealthy Retirement Podcast, teaching people how to reduce taxes, invest smarter, and make work optional. He has been recognized as a top 40 Under 40 adviser by InvestmentNews and one of the top 100 most influential advisers by Investopedia.
-
e.l.f. Beauty Stock Sinks on Mixed Results, Soft Guidance
e.l.f. Beauty stock is down Friday after the cosmetics company reported mixed results and trimmed its full-year guidance. Here's what you need to know.
By Joey Solitro Published
-
Amazon Is the Worst Dow Stock After Earnings. Here's Why
Amazon stock is at the bottom of the Dow Friday as the e-commerce giant's soft outlook offsets a fourth-quarter beat. This is what you need to know.
By Joey Solitro Published
-
Empowering Widows: Five Goals for Financial Security in 2025
Tackling these strategies one at a time, whether it's updating estate planning or reassessing investments, can help put you on track for financial stability.
By Stacy Francis, CFP®, CDFA®, CES™ Published
-
Market Volatility Tempting You to Get Out? Read This First
If you're retired, or soon will be, riding out a roller-coaster market can be nerve-racking. Try to hold steady and focus on balancing your investments.
By Lauren Ivester Published
-
Five Strategies to Defer Capital Gains in Real Estate Investing
These powerful strategies, from timing your sales during low-income years to leveraging qualified opportunity zones, can defer capital gains taxes on your real estate investments.
By Daniel Goodwin Published
-
Retirement Income Planning for Unfunded Health Care Costs
Retirement income plans often don't include late-in-life health or long-term care expenses. Here's how to cover for the unplanned withdrawals to pay for those.
By Jerry Golden, Investment Adviser Representative Published
-
Federal Employees Buyout Offer: Five Things to Consider
Federal workers have a constellation of retirement benefits, and assessing them can get complicated fast. Here are five high-stakes decisions to focus on.
By Ben Kautz, CFP® Published
-
Five Reasons Not to Give Your Child Power of Attorney
When drawing up powers of attorney, older parents will most likely name adult children as their representatives. But is that always the smart choice?
By Peter Newman, CFA Published
-
What the Great Wealth Transfer Means for Financial Advisers
Clients depend on their financial advisers to encourage them to tackle estate planning and guide them through complex strategies and potential family disputes.
By Doug Sherry, JD Published
-
Investment Management: A Return to Simplicity
Here's how financial professionals can find the sweet spot between using sophisticated investment strategies and creating more simplicity for their clients.
By Ben Sullivan, CFA®, CFP® Published