Estate planning is more than just preparing for the future—it’s about ensuring that your assets, loved ones, and legacy are protected according to your wishes. You can create a solid plan that brings peace of mind and security by answering the right questions.
In this blog, we’re providing a basic estate planning questionnaire covering 6 essential questions to get you started on estate planning and help you take control and secure your future. Keep reading to ensure your estate and loved ones are adequately cared for during your lifetime and after death!
What is Estate Planning, and Why is it Important?
Estate planning involves making arrangements for how your possessions, estate, and wealth will be distributed and handled after you can no longer make decisions for yourself, whether due to death or illness. This process includes creating wills, establishing trusts, and asking a myriad of essential questions to secure your future.
Failing to plan ahead could put your estate and wealth in jeopardy of being handled by the state instead of falling into the hands of chosen loved ones. Here’s why estate planning is essential, no matter what age you are:
- Estate planning ensures your wishes are followed. With a clear estate plan, you can outline exactly how you’d like your assets distributed and who will be responsible for your estate after death or illness.
- Preparing ahead of time protects your loved ones. Ensure your family and friends are provided for after you’re gone by distributing your wealth according to your wishes.
- Estate planning minimizes taxes and other expenses. By creating a thorough estate plan, reduce taxes on your estate and avoid unnecessary legal fees caused by probate and other complications.
- Planning ahead helps you prepare for the possibility of incapacity. If you’re unable to make life-altering financial and medical decisions, appoint trustworthy loved ones to do so.
While estate planning can feel daunting, it’s something you shouldn’t overlook—without it, you risk leaving the things and people that matter most to you in the hands of the state. Answering estate planning questions now means avoiding family conflict, added distress on loved ones, and costly consequences after you’re gone.
Planning Ahead? Here Are 6 Questions You Need to Ask Yourself
Estate planning is one of the most important things you can do during your lifetime, involving making crucial decisions to ensure your wishes are honored and your loved ones are protected. To help guide you through the complicated process, here are 6 essential questions to ask yourself as you plan:
1. Who will make decisions for me if I’m incapacitated?
If you become incapacitated, it’s paramount to have a plan in place of who will make difficult decisions for you involving your health, assets, and more. While it’s difficult to imagine this happening, planning ahead is essential so that this burden doesn’t fall to your loved ones in already distressing times.
Here are three roles and documents you need to consider in the estate planning process:
- Living Will: If you endure an incurable injury or illness, a living will outline which medical treatments you would or would not like to receive if you could not make these choices.
- Healthcare Proxy: A healthcare proxy allows you to put a trustworthy person in charge of making healthcare-related decisions on your behalf. Choose someone who you’ve communicated your wishes and who will honor your desires once you can’t make life-altering decisions.
- Durable Power of Attorney: A durable power of attorney assigns someone to handle your day-to-day financial and legal matters. This person can often receive income, write checks, pay bills, file taxes, and more for you.
Failure to have these documents written and roles assigned results in those you care about having to petition the courts for guardianship or conservatorship. In an already trying situation, you’ll want to avoid this at all costs. Consider who you trust and choose people who will help you leave a legacy that aligns with your values. Making these decisions now is essential to prevent unnecessary conflict and added stress on your family and friends if you become incapacitated.
2. Who will be granted my finances and possessions upon death?
Perhaps the most critical question during estate planning is determining who will receive your assets and finances once you’ve passed away. Naming beneficiaries happens when you draft a will or trust. Planning ahead in this way ensures you avoid probate and conflict among loved ones. This can be an intimidating and highly personal step. Consider your beneficiaries; whether it’s a friend who feels like family or a close relative you care deeply about. Naming beneficiaries is 100% your decision and responsibility, so don’t skip this step and risk the state determining who receives your assets and finances upon death.
Here are a few terms to know when asking yourself this question during estate planning:
- A beneficiary is someone who’s designated to receive something (assets or finances) according to the terms outlined in a will or trust.
- Probate is a lengthy court process for settling a deceased person’s personal and business affairs by carefully examining the validity of a will or trust. If, however, no will or trust is established, an administrator appointed by the state will decide who receives the deceased individual’s possessions and finances.
Once you’ve assigned beneficiaries to your assets, they transfer seamlessly to the named assignees upon your death. However, you have to complete a beneficiary designation form or “payable on death” designation for the process to run smoothly. Countless financial accounts allow this, including investment accounts, IRAs, life insurance policies, etc.
3. Have I crafted a legally binding will?
Crafting a will is the most essential step in planning for your future. Wills address numerous questions during estate planning, from determining who will inherit your property to specifying your final wishes regarding personal possessions.
Here are 2 terms you’ll need to know regarding drafting a will:
- Testator: This person creates the will, leaving it behind for their loved ones after they pass away.
- Executor: The individual assigned in your will to manage and carry out your wishes, including the payment of debts, distribution of property, and settling of accounts.
Any assets that haven’t already been assigned to transfer to survivors due to joint ownership, beneficiary designations, or a trust (discussed further below) often undergo the probate process. Having a will set in stone ensures this process is easy, but if there isn’t a will present, the state will create a “state-written will” for you, outlining how your assets and wealth are distributed. The state doesn’t take into account your wishes during this time, so it’s essential to create a clear-cut will to ensure you leave the proper legacy behind.
4. Do I need to establish a living trust?
A living trust is similar to a will but with the benefit of allowing your estate to pass to recipients in a private matter without costly court proceedings or lengthy probate delays. Living trusts also let you communicate to a chosen trustee how you’d like your assets in the trust handled during your lifetime and after an illness.
You’ll need to understand the following roles and components for establishing a living trust:
- Grantor or Trustor: The individual placing real estate, finances, or other assets into a trust.
- Trustee: The person or legal entity responsible for receiving property, placing it into a trust, and managing it for the benefit of the beneficiaries following the trust declaration and best business practices.
- Corpus of a Trust: The assets placed in a trust. A trust holds title to all property included in the corpus.
5. What decisions would I like to be made if I’m debilitated?
Another vital question to answer during estate planning is determining who will decide how you’re medically cared for if you become debilitated. Filling out a form for a durable medical power of attorney ensures you appoint someone who will honor your wishes if you cannot care for yourself.
When choosing who your durable power of attorney will be, consider these common end-of-life decisions they’ll have to make on your behalf:
- Dialysis
- Tube feeding
- Treatment options
- Palliative care
- Antibiotics
- Organ or tissue donation
- Which doctors to work with
- Cardiopulmonary resuscitation (CPR)
- Mechanical ventilation
- Surgery
- Whether you desire a “do not resuscitate” (DNR) or “do not intubate” (DNI) order
6. Who will be responsible for ensuring everything is carried out according to my wishes?
When estate planning, an essential question to answer is, “Who will make certain my wishes are carried out accurately?” Appointing an executor of your estate answers this question and ensures the legacy you leave behind reflects your intentions.
The executor manages all of the affairs related to your estate after you’ve passed away, including:
- The probate process
- Gathering possessions
- Submitting your will
- Sending all essential notifications of death
- Taking care of taxes
- Closing your estate
- Paying off leftover debts
In Utah, executors receive a small compensation for their services, which is generally determined by the size and complexity of the estate. Frequently, it’s around 2–5% of the estate’s total value, so it’s essential to consider these extra fees when naming your executor. Before appointing an executor, speak with the individual and ensure they’re willing to take on the responsibility. Being an executor can be stressful, but with the right person, your estate will be handled seamlessly and intentionally with the right person.
Answer Estate Planning Questions With Seasoned Professionals By Your Side
Whether you’re entirely new to estate planning or have a plan in place already, it’s vital to have the above questions answered. However, planning ahead can quickly become overwhelming if you do it alone. Kelly Cardon Law provides 5-star estate planning services, including drafting wills, establishing trusts, and providing attentive support during the entire process. Our team of estate planning attorneys in Summit County, Weber County, and Salt Lake County ensures your voice will be heard and listened to during the estate planning process and after you’ve passed away.
With 35 years of experience, we’re dedicated to helping you protect your assets and caring for your family during your lifetime and upon death. Kelly Cardon Law provides customized services to meet your needs and ensure you leave the proper legacy behind. Don’t try to plan without the help of a professional team on your side. Contact us today to secure your future and receive guidance to answer complex estate planning questions.