2. Choose a trusted person
You'll need to choose the person, known as a healthcare proxy, who will make medical decisions if you're unable to do so. You'll also want to designate someone as power of attorney to manage your financial affairs and property if you can no longer do so. This person is often a child or spouse, but it can be anyone you choose.
3. Update your paperwork
Make sure the beneficiaries on any life insurance policies and retirement accounts are updated. Beneficiary designations supersede your will instructions. That means that even if you leave all your assets to someone in your will, the person listed as the beneficiary will receive the policy or retirement account. You don't want a death benefit to go to an ex-spouse because the forms were never updated.
4. Value your assets
Put together a personal balance sheet that includes real estate, stock, bank balances, vehicles, collectibles, and all liabilities. Keep these values updated. If you set up a trust and then accumulate new assets, you could add years to the process.
5. Decide how the assets will be divided
Unless you set up an irrevocable trust, these decisions can be changed. After you do this, make your bank account payable on death. This will make it so the money avoids probate and goes directly to the beneficiary.
6. Make a succession plan for your business
If you own and run a business, you probably have an idea how difficult it would be to adjust operations if you weren't there. Put a plan together for future ownership and who will manage the company.
7. Engage an attorney
No matter what size your estate is, you'll benefit from working with a professional. You can also disregard the order of this list if you're having problems and engage an attorney for help at any time.
8. Decide what type of life insurance and long-term care insurance you need
Life insurance will support your dependents, and long-term care insurance can save your assets from being used to reimburse Medicaid.
