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Steps and Tips to CreatingA Simple Estate Plan

There is a common misperception out there that estate planning is only for people with

high net worth. This is NOT true. Estate planning is more than just making sure that your

assets, whatever they may be, go to the right people or organizations. It is about making

sure your family and loved ones are taken care of, and that your wishes and instructions

are followed, in the event or your death or disability. Here are some steps and tips that

anyone can take to put a simple estate plan in place:

1. Have a will drawn up. Your will should state who you want to inherit your assets

when you die. If you are married, make sure that both you and your spouse each have

a will. If you have children, you should

name a guardian for those children in

your will; you may also want to have your

will create a contingent trust to hold and

distribute assets for your children until

they become adults (naming a trustee to

administer the trust also).

2. Get a Durable Power of Attorney.

A Durable General Power of Attorney is

usually used to allow your attorney-in-

fact to handle all of your affairs during a period of time when you are unable to do so.

A Durable General Power of Attorney is frequently included as part of an estate plan to

make sure that you have covered the possibility that you might need someone to

handle your financial affairs if you are unable to do so.

3. Consider a Trust. Trusts allow you to put conditions on how and when your assets will

be distributed when you die. They also may reduce estate and gift taxes, as well as

allow for distribution of assets to your heirs without the cost, delay and publicity of 

probate court. Some also offer greater protection of your assets from creditors and

lawsuits.

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4. Create Advance Health Care Directives. Healthcare Directives / Advance Directives

protect your right to refuse any medical treatment you do not want, or to request any

treatment that you do want, in the event that you lose the ability to make decisions

for yourself.

5. Appoint a Healthcare Power of Attorney / Healthcare Personal Representative. A

Healthcare Power of Attorney lets you name someone to make certain decisions

(healthcare, financial…etc) on your behalf in the event you are unavailable or not able

to speak for yourself. Your can also appoint a “health care representative” – which

under Indiana law means that person may make decisions concerning the withdrawal or

withholding of health care; without being appointed as your healthcare representative,

your attorney-in-fact will not have this power.

6. File a Beneficiary Form for Bank Accounts. Naming a beneficiary for your bank

accounts and retirement accounts typically makes those accounts ”payable on death”

automatically to your beneficiary – skipping the probate process. Talk to your bank or

retirement account administrator.

7. Explore Life Insurance. If you have minor children and/or a mortgage, or will have

other unpaid debts when you dies, you should consider obtaining a life insurance

policy. Here is an excellent post on exploring life insurance options.

8. Discuss Your Estate Plans With Your Heirs and People that are Responsible

(trustees, executors…etc) under your plan. This will help prevent confusion about

inheritance and what your wishes are, regardless of how well they are spelled out in

writing. Make your wishes known regarding organ donation whether you desire burial or

cremation.

9. Plan Ahead for the Succession of Your Business. Make sure your wishes regarding

how the ownership passes are known, planned for, and properly documented. If you

are not the only owner, make sure you have a buy-sell agreement in place with the

other owners.

The materials in this document have been prepared by The Law Office of Brian V Powers, an Indiana law practicemanaged by licensed Indiana attorney Brian V. Powers, for informational purposes only and are not legal advice. Thisinformation is not intended to create, and receipt of it does not constitute, an attorney-client relationship, nor doesyour use of this document create of constitute and attorney-client privilege. No person or organization should act uponany information in this document without first seeking professional legal counsel.