In this episode:
00:00 – 04:46: Why You Need an Estate Plan
04:47 – 14:18: Start with Powers of Attorney
14:19 – 26:17: Comparing Wills vs. Trusts
26:18 – 34:44: Your First Steps and Closing
Estate planning isn’t only for the wealthy. It’s for anyone who has property, assets, money and, most importantly, wishes about how those should be handled. SVP Director of Wealth Strategy, Joe Maier and VP Wealth and Estate Administrator, Liz Pfeuffer sit down to demystify estate planning and explain the real consequences of not having a plan, the documents you should have in place and the first steps you should take.
5 Key Takeaways
1. Everyone should have an estate plan
Estate planning isn’t a luxury reserved for the rich. As Liz puts it, “we’re all wealthy in our own way.” Even a simple plan can make a big difference for your family.
2. Not having a plan leads to costly, public court battles
Without a plan, family disagreements can spiral into a slippery slope of disputes and court proceedings. When judges get involved, the process can become longer, more public and more expensive.
3. Powers of attorney are essential
Every adult needs powers of attorney documents completed. They are used during your lifetime to cover incapacity and when you need it most.
Pro tip: When your children become legal adults at 18, help them fill theirs out before they leave for their next chapter.
4. Wills and trusts serve different and complementary purposes
Everyone needs a will as their estate planning foundation, especially to nominate guardians for minor children. Trusts go a step further: The trustee holds legal ownership while you keep equitable ownership.
| Will | Trust | |
| Court | Goes through probate court before assets reach beneficiaries. | Bypasses probate for faster transfers to beneficiaries. |
| Effect | Takes effect after death. | Before and after death, including incapacity. |
| Privacy | Public - probate records are accessible to anyone. | Private - trust documents and distributions are generally private. |
5. Lists make the overwhelming manageable
Estate planning can feel overwhelming, so Liz advises starting with the basics. Begin with making lists of people you trust, all your assets, your debts and your beneficiary designations. A little organization now saves time, headaches and heartache later.
Ready to protect what matters most to you? Start your estate plan by connecting with an advisor today.
Frequently Asked Questions
Estate planning basics come down to four things: A will, powers of attorney for finances and healthcare, beneficiary designations and a clear inventory of what you own and owe. Together these documents name who decides for you, who receives what and who cares for your children.
Yes, everyone should have an estate plan. Estate planning is for anyone with property, assets or wishes about how those should be handled. As Liz Pfeuffer says in the episode, "we're all wealthy in our own way." Even a simple plan spares your family confusion and expense during an already hard season.
State law decides who inherits your assets and a judge may decide who raises your minor children. Family disagreements can escalate into court proceedings that are longer, more public and more expensive than a plan would have cost. Your family loses both privacy and control.
A power of attorney names someone to handle your finances and someone to handle your healthcare decisions if you become incapacitated. It works during your lifetime, not after death, which is why every adult needs one.
Pro tip: When your children turn 18, help them complete theirs before they leave home.
A will directs where your assets go after death and nominates guardians for minor children. A trust splits ownership, the trustee holds legal ownership while you keep equitable ownership and can manage assets during your lifetime and beyond. Most plans use both.
Review your plan every three to five years and any time life changes (marriage, divorce, a new child or grandchild, a death in the family, a move to another state or a significant change in assets). Beneficiary designations deserve their own check since they override your will.
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