Sick of the Same Old Resolutions? Consider an Estate Planning Resolution

Let’s be honest: giving up chocolate, hitting the gym five days a week, or finally organizing the garage might sound noble, but how often do those resolutions stick? This year, why not make a resolution that is doable and meaningful? Trust me, reviewing your estate plan is way easier than giving up chocolate.

Resolution 1. I Will Create a Plan (If I Don’t Have One Yet)

If you don’t have an estate plan, now is the perfect time to start.

Without a will, state law determines how your assets are distributed. That might not match your intentions and could leave out people or causes you care about. An intestacy proceeding can be costly, time-consuming, and stressful for your loved ones. Worse, if you have children who are minors, the court will decide who raises them.

Where Do I Begin?

Start with these steps:

1. Think about your goals – Who do you want to provide for? What values do you want to preserve? Consider your family dynamics, charitable intentions, and long-term legacy.
2. List your assets and debts – Knowing what you have helps shape your plan.
3. Choose fiduciaries - executors, trustees, guardians, and agents—who are both reliable and well-equipped to carry out your wishes.
4. Work with an estate planning attorney to ensure your documents are properly drafted and your assets are titled correctly.

Resolution 2. I Will Review and Update (If Necessary) My Estate Plan

Even if you already have an estate plan, it’s important to revisit it regularly and update when necessary. Life changes - marriages, births, deaths, relocation, financial shifts, and more can all impact your plan. Here's what to check:

Key Documents: Do You Have the Essentials?
Make sure you have these foundational documents in place:

• Last Will and Testament – Directs how your assets are distributed after your death and allows you to designate an executor to handle your estate. It also allows you to name guardians for minor children.
• Power of Attorney – Appoints someone to manage your financial affairs if you're unable to.
• Health Care Proxy – Designates someone to make medical decisions on your behalf.
• Living Will – States your wishes regarding life-sustaining treatment.
• Trust (Optional) – A trust can be a powerful tool depending on your goals. It may help avoid probate, manage assets, plan for incapacity, support charitable giving, minimize estate tax, or provide for loved ones with special needs or complex situations. Not everyone needs a trust, it's best considered with professional guidance based on your unique circumstances.

Inventory of Assets & Liabilities
Review what you own and owe: bank accounts, investment accounts, retirement plans, real estate, insurance, business interests, and debts.

Are your assets titled correctly? How your assets are titled can significantly impact how they’re transferred at death. Common methods like joint ownership, “payable on death” (POD) designations, and trust ownership each have different implications.

Having a cohesive estate plan in place is important to ensure your goals and values are fulfilled. For your plan to be cohesive, beneficiary designations and account titling must be consistent with your Will or Trust. If your Will leaves a portion of your estate to charity, but all your assets name your children as a beneficiary, then the charity will not receive anything under your Will.

Similarly, a revocable trust only governs the assets that are actually titled in its name. If you don’t transfer ownership of your accounts, real estate, or other property into the trust, those assets may still go through probate—which could defeat one of the main reasons for creating the trust in the first place. Creating a trust is a powerful estate planning tool but it’s only effective if it’s properly funded. Review and update ownership and titling to ensure alignment with your documents and your estate planning goals. Otherwise, your wishes may not be carried out as intended.

Confirm that primary and contingent beneficiaries are in place on retirement accounts, insurance policies, and TOD accounts and they align with other aspects of your overall plan.

Fiduciaries and Agents
Are the people you've named as executor, trustee, guardian, or agent still the right choices?

• Are they still willing and able to serve?
• Do they understand the responsibilities involved?
• Have you discussed your wishes with them?

These roles carry significant weight—managing finances, making medical decisions, navigating legal processes, and more. It’s not just about trust; it is about capacity and comfort.

Consider this: Would a Corporate Trustee or Executor make more sense in your situation?

Corporate fiduciaries bring:

• Professional expertise
• Continuity
• Impartiality in family dynamics
• Administrative efficiency

While they do charge fees, the value they provide can far outweigh the cost, especially in complex or high-value estates.

Resolution 3. I Will Share My Plan with Those Important to It

Creating or updating your estate plan is a powerful step—but it’s only truly effective if the right people know about it. Sharing your plan ensures that your wishes are understood, your fiduciaries are prepared, and your loved ones aren’t left guessing during a difficult time.

This doesn’t mean revealing every financial detail. It means having thoughtful conversations with those who play a role in your plan, your family, your fiduciaries, and your corporate trustee if applicable.

Let them know:

• That you’ve created or updated your plan.
• Who has been named to act on your behalf.
• Where your documents are stored and how to access them.
• Any special instructions or values you want honored.

These conversations provide clarity, reduce the risk of conflict, and help ensure your plan is carried out smoothly and respectfully.

Final Thought
Estate planning isn’t reserved for a specific age or income level, it’s about making thoughtful decisions for the people and causes you care about, no matter where you are in life.

Reach out to Tompkins Financial Advisors to schedule a conversation about your estate plan. Whether you are reviewing existing documents or building a plan from scratch, your advisor can help guide you through the process and ensure your wishes are clearly documented and thoughtfully executed. We’ll bring the chocolate!  

https://www.tompkinsfinancialadvisors.com/about-us/contact-us 

Investments and insurance products are not insured by the FDIC, not deposits of, obligations of, or guaranteed by the bank or its affiliates, and are subject to investment risk including possible loss of principal. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.