Estate Planning Basics You Need to Know

Estate planning can come in a variety of forms, from basic beneficiary designations when you open a bank or brokerage account to more complex and comprehensive plans.

Why Everyone Needs an Estate Plan

If you think of estate planning as something only ultra-wealthy people need to do, you’re not alone. That’s a common misconception.

What Should I Know about Beneficiaries?

Whenever you open a financial account, you’re almost always asked to name a beneficiary. Simply stated, a beneficiary of the account is someone who is entitled to the benefits of the account, typically, on the death of the account holder. If you’ve purchased life insurance, for example, you name a beneficiary, who receives the benefits of the policy when you pass.

What are Fiduciary Duties in Estate Planning?

As you plan how you will leave your estate, it is important to your family’s future that you leave a legacy with well-executed documents. It’s also essential that you understand all of the roles of the people involved in your estate, especially the person or organization who will manage your estate.

How Current is Your Estate Plan?

Most people do not update their estate plans often enough. The most common (and most absurd) excuse for not updating planning, that most advisers hear is: Nothing has changed.