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Throughout life, you often plan for major milestones – retirement, buying a home, or sending your kids to college. End-of-life planning is another important step, focused on organizing your financial affairs so your assets are distributed according to your wishes. It also helps reduce stress for your loved ones during a difficult time. In addition to asset distribution, your estate plan should include planning for your care and decision-making if you become incapacitated.

Here are a few things to consider when planning for the end of life:

1. Estate documents

A good estate plan typically includes a will and/or revocable living trust, durable power of attorney, living will, and health care power of attorney. These are documents you create with your attorney to help navigate the legal ramifications of your estate plan. A durable power of attorney is especially important if you’re incapacitated, though it becomes invalid upon death. Your will, which may work with a revocable trust, would then come into play to carry out your wishes and instructions.

2. Beneficiary designations

Accounts like IRAs and life insurance policies can be passed directly to beneficiaries, bypassing a formal court process, also known as probate. By designating beneficiaries, you can be sure your assets are transferred quickly and accurately. Currently, donations of an IRA to a charity may allow the charitable organization to avoid income tax, which is a good way to make a larger donation.

3. Transfer on death/payable on death

Certain other assets may allow you to designate beneficiaries. Your bank accounts, investment accounts, and real estate are examples of resources you may choose to convey to heirs through transfer on death (TOD) or payable on death (POD) designations. Utilizing these methods can be valuable in efficiently directing your assets to heirs or charity.

4. Communication with your team

When creating your estate plan, be sure to include professionals – such as an attorney, financial consultant or accountant – as well as a close family member or friend who may be asked to act as your power of attorney or executor. Clear communication with this team will help ensure your plan is legally sound and aligned with your goals.

5. Communication with family or heirs

Discussing your estate plan with loved ones can prevent confusion or conflict after your death. 
Clarify your intentions and roles and consider 
involving members of your professional team to help explain details.

6. Charitable giving

Many plans include a charitable giving component, allowing you to leave a lasting legacy after you’ve passed. Estate planning provides numerous opportunities for you to support causes you care about – whether that be through donor advised funds, charitable trusts, or bequests.

Everence Financial can help you plan with confidence, ensuring your wishes are fulfilled and your assets are managed wisely.

To learn more, visit everence.com or by calling (800) 348-7468.