Making a Will Is the Beginning, Not the End, of Legacy Planning

August is National Make-A-Will Month, which makes it a useful time to ask a basic question: If something happened to you, would your estate plan actually accomplish what you intend?

For many people, the first instinct is to think about a will. That is an important place to start. A will can identify who should receive property held in your individual name, nominate an executor to administer your estate, and, for parents of minor children, nominate guardians. But a will is not the entire estate plan.

In fact, some of the most important questions in estate planning are not answered by the will at all.

What a Will Does Not Control

Many assets pass outside the will entirely. These may include:

• retirement accounts;

• life insurance;

• jointly owned property;

• accounts with beneficiary or transfer-on-death designations; and

• assets held in a trust.

If the beneficiary designations on those assets do not coordinate with the estate plan, the result may be very different from what the will says.

A complete estate plan therefore requires looking not only at the documents, but also at how assets are owned and who is named to receive them.

Planning for Incapacity Matters Too

A will generally becomes relevant only after death. It does nothing to address what happens if you are alive but unable to manage your own affairs.

That is why an estate plan ordinarily also includes documents such as a durable power of attorney and health care directives. For some families, a revocable trust can provide an additional mechanism for managing assets during incapacity and after death.

These documents answer a different—and often equally important—question:

Who can act for you if you cannot act for yourself?

The People You Choose Matter as Much as the Documents

Estate planning also requires selecting people to carry out the plan.

An executor, trustee, agent under a power of attorney, health care agent, or guardian may ultimately be asked to make significant financial and personal decisions.

The right person is not necessarily the oldest child, the closest relative, or the person who knows the family finances best. The role may require judgment, organization, independence, financial sophistication, and an ability to navigate family dynamics.

Choosing fiduciaries deserves the same attention as deciding who receives the assets.

Estate Planning Is an Ongoing Process

Even a well-designed estate plan can become outdated.

A review may be appropriate after:

• a marriage or divorce;

• the birth of children or grandchildren;

• a significant inheritance;

• the purchase or sale of real estate;

• retirement;

• a move to another state;

• changes in tax laws;

• the death or incapacity of a fiduciary or beneficiary; or

• a significant change in the nature or value of your assets.

Beneficiary designations and asset ownership should also be reviewed periodically.

A Useful Question for Make-A-Will Month

If my family had to carry out my plan tomorrow, would they know what I wanted—and would I have given them the legal authority and practical guidance to do it?

A will is an important part of the answer. But thoughtful estate planning goes further. It coordinates assets, fiduciaries, incapacity planning, family circumstances, tax considerations, and—where appropriate—the stewardship of the things you hope will endure.