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You Have a Will – Is It Time for an Estate Plan?

An estate plan takes your will a step further to account for more than just your possessions. It provides clarity to your estate and can help head off potential future family battles.

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Most people have a will. But a simple will often doesn’t cover some complex issues facing your heirs, which is why I recommend an estate plan.

SEE ALSO: 7 Tips on Choosing the Right Executor for Your Will


  • What you want to happen after you pass away;
  • Why you want it to happen;
  • Who will ensure it happens.




Here are four tasks you’ll need to complete to get started:

1. Make a Current Statement of Net Worth


Include the approximate value of each asset as well as the current owner(s) and any beneficiaries. For example, it’s likely that a married couple will jointly own their house. But when it comes to retirement accounts, 401(k) or individual retirement accounts, most will be in the name of each individual.

It’s vital to account for every asset, even some of the smallest ones. For example, in a California case, two siblings spent almost 10 years in court and over $750,000 on legal fees in a dispute over who should inherit their father’s surfboard. If the father had spelled out the heir in his will, they would have likely avoided financing an attorney’s vacation home!

2. Write Letter of Intent and Instruction

After a person has died, disputes often arise. Even if a particular piece of property is given to one person, other heirs often will argue that “Mom and Dad really wanted me to have it.”



Writing a letter that explains the reasons — and the intent — for choosing to give a particular asset to a person can forestall needless family strife and legal challenges. If possible, the letter should provide as many details as possible. For example, if you have decided to give an heirloom or other sentimental piece of property to only one person, state the reasons and intent behind this gift.

3. Choose the Right Decision-Makers



If the estate plan includes a trust, a trustee can be chosen to oversee it if your heirs may not have the financial ability to properly manage millions of dollars or other new assets. If you don’t know someone who can fill this role, consider a professional, such as a bank or corporate trustee.



If you would like your children to attend private schools, and a life insurance policy provides them the money to do that, the trustee and guardian will work together to carry out your wish. Also, any instructions should provide context to help the trustee and guardian make the best decisions. For example, if you provide funds for a car that provides “reasonable comfort,” it could mean a Honda Accord for one person and a Mercedes-Benz to another.


4. Make Regular Updates to Your Plan.

Review your estate plan at least every five years and at “milestone” events, such as marriage, divorce and new children. Also, make certain to regularly update beneficiaries and potential decision-makers.




Jason Cross is a wealth adviser at Brightworth, an Atlanta wealth management firm with $3 billion in assets under management, serving more than 1,200 families in 48 states. He works with high net worth families in investment management, retirement transition, business succession and wealth transfer planning. Jason is a Certified Financial Planner™, Certified Trust and Financial Advisor and an active member of the Georgia Bar Association.

