Identifying Your Goals

Identifying and defining your goals is the starting point of the estate planning process. Just as you would not build a house without goals and blueprints, developing specific goals is the first step towards accomplishing what you want to do in estate planning. Everyone's situation is unique, and everyone will have different goals. However, most people have some of these goals in common:

1-To maximize the value of their assets- How can you plan to avoid unnecessary fees? What can you do to ensure that your estate's assets will keep their value?

2-To provide for their loved ones-Do you have a plan to provide for adequate income for your family so they do not incur a financial burden?

3-To name responsible guardians for their children or dependents-Who will look after your children in the event that both you and your spouse die? Do you have dependents who need special care?

4-To name an executor for their estate-Who will serve as the executor of your estate? Are they capable, and responsible? Are they willing to fulfill this obligation?

5-To distribute assets according to their wishes-How do you want your assets to be managed and distributed? Do you want to leave money to a charity?

6-To ensure that there is sufficient liquidity in the estate to pay taxes and liabilities-Will some assets need to be sold in order to pay these debts?

As you plan you goals, one of the best ways to ensure that nothing is overlooked is with the use of a checklist and an asset inventory form. It's particularly helpful to list such assets as your home, vacation cottage, business properties, and life insurance. Also, those special items such as a coin collection or rare antique furniture should not be forgotten.

It's important to realize that some goals may be unobtainable because a person may simply lack sufficient resources or because the achievement of one goal will prevent the attainment of another goal. Therefore, it's good to have alternate goals and strategies available to help you.

Once the goals are in place, you can then proceed with your attorney or estate planner to begin the next steps of estate planning: gathering the data, evaluate whether these goals are do-able, developing strategies, implementing the plan, and reviewing your plan.

If you already have an estate plan in place, it makes sense to review it or update it from time to time. You would want to revise your goals whenever there are major changes in your family situation; such as a marriage, divorce, new baby, recent inheritance etc. Similarly, changes in the tax laws should also warrant your review to make sure that the plan is not out-of-date.

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