Estate planning basics: 12 essential tasks, whatever your age

This month’s financial planning challenge task is to tackle your estate planning. Many of us know deep down that we should do this but push the job down our list of priorities. We want to encourage you to take the time to get the basics done. Not only will it make a huge difference to those you leave behind, but it will boost your wellbeing knowing that your affairs are in order. Wondering where to start? Start with this handy checklist of essential estate planning tasks.  

Why estate planning is important

Estate planning isn’t just for the elderly or wealthy—it’s an essential step for anyone who wants to ensure that their assets, health, and legacy are handled according to their wishes. Whether you’re in your 20s or 60s, there are key steps everyone should take to create a solid estate plan.

By addressing these key decisions now, you can prevent unnecessary legal complications, reduce stress for your family, and create a roadmap for your future that reflects your values and priorities. All that will have a positive impact on your own financial wellbeing.

Here are 12 essential tasks to consider, no matter your age.

12 essential estate planning tasks

1. Create a will

Your will is the cornerstone of your estate plan. It ensures that your assets go to the people or causes you care about.

You may be young, but you still need a will.

You may think your assets are insignificant, but you still need a will.

You may believe your family situation is super simple, but you still need a will.

Our consultants frequently hear these three justifications from clients who don’t have a will. And our advice is always the same:

Whatever your age, family situation, or level of wealth, you need a will! This article explains some of the reasons why.

While it is possible to write a will yourself, it’s easy to make mistakes which could render it null and void. This is an area where we advise taking advice from a professional will writing service and of course, we can help you with this. Contact us if you’d like to make an appointment to get your affairs in order, ensuring that your loved ones are protected, whatever happens to you.

2. Designate beneficiaries 

For accounts like life insurance, retirement plans, and pensions, you should directly name beneficiaries. Keep these designations up to date, especially after major life events such as marriage, divorce, or the birth of a child.

3. Establish powers of attorney

There are two main types of power of attorney: one for financial matters and one for health care decisions. These documents let someone you trust manage your affairs if you become incapacitated. That might seem like a remote possibility if you are young and/or in good health, but we all know that life is full of surprises. Better safe than sorry.

4. Create a living will

A living will, sometimes known as an advance healthcare directive, outlines your medical wishes if you’re unable to communicate. It covers important decisions like life support, resuscitation, and organ donation.

5. Set up a trust (if applicable) 

Trusts can be a useful tool for managing and distributing your assets, especially if you have a large estate or specific goals for how your assets should be used. A revocable living trust allows you to control your assets during your lifetime and dictate how they’re managed after your death. Trusts are complicated and you’ll need expert advice.

6. Review and organise your assets

As our financial lives become increasingly complicated, it is more and more important that you keep an inventory of assets to ensure that nothing is overlooked upon your death.

To give an example, according to recent figures from Standard Life, one in five people with multiple pensions have lost track of at least one of them, contributing to £27bn in unclaimed savings across the UK.

Make a complete inventory of all your assets, including property, investments, bank accounts, and valuable personal items. This will simplify the probate process for the executor of your will and your next of kin.

7. Plan for minor children 

If you have children under 18, your estate plan should include provisions for their care. This involves naming a legal guardian and possibly setting up a trust to manage their inheritance until they come of age. A failure to do this may mean that the courts make that decision for you, and there is no guarantee their choice will be the same as yours.

8. Consider long-term care needs

Regardless of your age and state of health, it’s wise to consider future healthcare costs. You should consider how you’ll fund care in the event of a serious illness or disability. Life insurance and critical illness cover are useful tools for this and your financial adviser will be happy to discuss your requirements with you.

9. Update your estate plan regularly

Life changes quickly. Events like marriage, divorce, the birth of a child, or changes in your financial situation can all affect your estate plan so review it regularly to ensure it reflects your current wishes.

10. Plan for digital assets 

In today’s digital age, don’t forget to make a plan for your online presence and digital assets. This includes social media accounts, emails, and cryptocurrency. Make sure your next of kin know how to access these accounts.

11. Minimize estate taxes

If your estate is large enough to be subject to inheritance tax, you should discuss how to minimise the tax burden and maximise the amount your loved ones will receive with your financial adviser. Options may include gifting assets or setting up certain types of trusts, and these solutions take time to set up.

12. Communicate your wishes 

Lastly, communicate your plans with loved ones. While it can be a difficult conversation, letting your family know your wishes will reduce confusion and potential conflicts down the road.

Help with estate planning for expatriates in Asia

Estate planning is one of the most important yet often overlooked aspects of financial well-being. It’s not just about preparing for the inevitable—it’s about ensuring your wishes are honoured, your loved ones are protected, and your assets are distributed according to your plan, not by chance or court decisions.

Regardless of your age or current wealth, estate planning will provide peace of mind and boost well-being by giving you control over your financial legacy.

If you’re unsure about any of the financial elements of your estate planning, we’re here to help. Contact your financial adviser to discuss your concerns, or, if you don’t have one, why not set up an informal chat to find out how we can help you with all your financial planning needs?