Over the course of the last several articles we have discussed the importance of having a financial plan. It isn’t just about choosing the right investments but should be what you want out of life. The estate planning component is to provide for your family and loved ones and to distribute your wealth in the way you wish. There are just a few considerations in settling your affairs that would relieve the stress of those grieving for you.

As mentioned previously, reconsider your executor periodically - your financial situation may have become far more complex then when you originally selected the individual. To avoid conflict, which is one of the major considerations why you did all this planning in the first place, immediate family may not be the best choice. Look at the benefits of appointing a trust company (an impartial third party) to act as executor and trustee and then name a responsible family member as co-executor and co-trustee.

Arranging a funeral can be a very stressful, emotional time and can result in added costs resulting from last-minute arrangements. A preplanned funeral can reduce costs, as well as allow for family input into the arrangements and ensures that your wishes are known. It also relieves family members from having to make these decisions at a difficult time.

After you have prepared your will and decided how you wish your assets to be distributed, the next step is communication. It’s really important to communicate your wishes to your family and loved ones so there is no misunderstanding. One of your main goals in preparing an estate plan was to try to avoid conflict, and though it’s hard to be fair in everyone’s perception the chances are far better if your heirs know where they stand prior to your death. Therefore it’s very important to share your plans, and document them so there is no confusion. Gathering the important information required to settle your estate (so your executor(s) don’t have to look for it) can save time and confusion. Then review and update it on regular basis as life keeps moving and your wishes may change.

The estate plan will provide you with peace of mind that comes with knowing you have left your personal and financial affairs in order and will not burden your loved ones with the task of resolving them.

August 28, 2009