BY: Richard Crowder, CTFA
Senior Vice President and Wealth Advisor | (601) 790-1618
Richard Crowder, CTFA
Originally published in NorthsideSun Magazine August 2024
When is the last time you made a holistic review of your estate plan? How old is your Last Will and Testament and when is the last time you reviewed it? Or do you not even have a Will? The estate planning process can seem over-whelming, and it can be difficult to know where to start. Estate planning, in its simplest form, is knowing what you have and how you plan to dispose of it. Although it’s essentially your end-of-life decisions, you need to plan for those decisions now. The best approach to estate planning is to start with the basics.
Step One: Reducing your thoughts to writing.
Make a written list of your long-term goals and short-term aspirations. This will help organize your thoughts and can be a future reference to keep you on track. This is your “big picture”, so let’s not make this more complicated than it needs to be at the beginning stage. After all, if you don’t know where you want to go, then it’s very hard to get there. Now that you have the big picture, let’s start with where you are presently…..
Step Two: Knowing and confirming what you have.
This is where your homework begins. Make a written list of all your assets (and debts). This should include financial assets, retirement accounts, life insurance, real estate, automobiles, other titled items, collectables, and any debts. On this list, include the value and the ownership of each. If jointly owned, list the joint owner’s name. For retirement accounts and life insurance policies, include the beneficiary designation. If any account has a “payable-on-death” (POD) or a “transfer-on-death” (TOD) provision, include that information.
Regarding the ownership, there are several things to keep in mind. Are any of your financial accounts or land deeds styled in joint ownership? Are there POD and TOD designations to consider? These are important issues since they take precedent over whatever is in your Last Will & Testament. The same holds true for assets with beneficiary designations (retirement accounts and life insurance). So, it’s very important to know (and confirm) the ownership/styling and the beneficiary designation of all assets. If there has been a divorce, be sure all account stylings and beneficiary designations have been updated accordingly. Also, should you have power-of-appointment over assets in a Trust, this certainly needs to be considered when reviewing your Will and overall estate plan. If you are uncertain about any of this, it’s best to confirm it in writing. In other words, remove any doubt. Now that you know where you are, let’s cover where you want to go…..
Step Three: Deciding where your assets should go and how best to dispose of them.
Many people leave everything to their surviving spouse or, if none, then to their children. Others may want to leave some funds to a charity or special friends. In these cases, a well drafted Last Will & Testament can accomplish these goals. However, you may have circumstances that require a more tailored approach. You may have minor children, special needs family members, or just irresponsible children. Maybe your surviving spouse or children will need a professional investment advisor. Many parents trust their children with an inheritance but would rather wait until they are much older than twenty-one before they receive a large sum of money. You may desire to set aside funds for grandchildren’s education. Every family situation is unique. In all these circumstances, a Trust could address these concerns and accomplish your goals beyond the grave. Also, estate taxes may come into play for larger estates. Many of our clients utilize Trusts to minimize estate taxes. The terms of a Trust could be part of your Last Will & Testament and would be funded through your estate administration. You would dictate the terms of the Trust (including distribution provisions), the appointment of the Trustee, and the termination event. The Trust assets can be shielded from your beneficiaries’ debts and creditors. Whatever your goals and circumstances, an estate plan can be put in place for you. Now that you’ve decided where your assets should go and how best to dispose of them, your next step is to engage qualified advisors….
Step Four: Engaging an attorney and a financial advisor.
Choosing a qualified attorney to draft your estate planning documents is important. In addition to your Will, other important documents are a Power-of-Attorney, a Health Care Power-of-Attorney, and a Health Care Directive. A discussion of your family dynamics and long-term care decisions is also in order. Here at Argent Trust Company, we work with many experienced Trust and Estate attorneys. If you do not have an attorney, we’d be happy to make a referral.
Argent Trust Company is privileged to work with many families to help achieve their financial goals while serving as professional Trustee of their family’s Trust funds and fiduciary manager for their personal investments. As Mississippi’s only independent Trust Company, Argent provides a remarkable breadth of comprehensive services, including investment management, Trust administration, family wealth planning, and mineral management. We at Argent welcome the opportunity to assist you with your financial and estate planning needs.
There are many other specifics that will need to be discussed during your estate planning meetings. A man once said, “If I leave a dime when I die, then I miscalculated by ten cents.” While your planning doesn’t need to be that exact, it is important to plan. Make your wishes clear. Review your estate plan about every five years or as your circumstances change. Remember, the first big decision is simply the decision to start. And a good starting point is our Step One.
