By Lidia G. Rincon, Esq.

The most popular subject at the senior centers I visit is estate planning. Estate planning is that – a plan for the handling of your estate. But what is a person’s estate and why does it need to be handled?

While I agree the word “estate” sounds intimidating, a person’s estate is simply everything a person owns or has title to.  This includes real and personal property, financial accounts, animals, life insurance, and debts.   Thus, estate planning is the process by which a person comes up with a plan, flowchart, or instruction guide for the distribution and handling of their earthly possessions after they are no longer with us.  In my opinion, an estate plan should be tailored to fit your personal circumstances.   Whether you decide on having a Last Will and Testament or decide on setting up a Trust, depends on the size of your estate and other factors to consider.  Although a Last Will and Testament may be for everyone, a Trust might not.  If you already have an estate plan in place, it does not hurt to revisit that plan often to ensure all your ducks are still in a row.  Perhaps what you wanted to give Pedro in 1990 should now be given to Kip.

If you are thinking about your own estate plan but are not sure where to start or whether a Last Will and Testament or Trust is best for you, my first recommendation is to do a general inventory of everything you own including things you might own jointly with other people.  Although a person can only give away the things they own and are in their name, how things are titled, be it a house, mobile home, car etc…, is relevant when crafting an estate plan.  Creating an inventory does not necessarily mean you have to account for every single knick-knack or piece of personal property; creating an inventory means that you recognize and identify your things, especially the things that have your name attached to them.  Even though debts are not something we like to discuss, knowing what debts might be owed at time of death is as equally as important as inventorying assets.  Checking beneficiary designations on life insurance plans, bank accounts, investment accounts, among other things, should be a part of your inventory too.   Additionally, it is helpful to gather names of banks, life insurance companies, other accounts, and any other information that your family may find useful and necessary when the time comes for them to step in to handle your estate.    

The following is a list of recommendations to consider that can prove beneficial when you sit down with a legal professional to devise your estate plan:

• Inventory your things – assets / debts
• Check beneficiary designations – life insurance policies, retirement plans (if applicable), investment accounts, financial accounts
• Think about the WHO – who is getting your things, who are your legal heirs (even if you do not have a relationship with them)
• Think about your pets and what should happen to them when you are no longer around
• Have you made any funeral arrangements?  What is your plan?
• Talk to your loved ones – family and friends – NOW before it is too late

In summary, if you want to have a say in how your things are distributed and handled after your death, consider an estate plan and meet with a legal professional to determine whether a Last Will and Testament or Trust is right for you.