The term "estate planning" often conjures up images of the lifestyles of the rich and famous, complete with yachts, private jets, and mansions. It's easy to feel like you only need to worry about this if you have a literal estate with manicured gardens. But the truth is much simpler. This process is about making sure you, everything you work so hard for, and the people you care about most will be okay no matter what happens.
The risks of not having an up-to-date roadmap
In the financial planning process, we always ask what the strategy is for life's unexpected turns. When it comes to your estate, having no documents means there is no strategy. This puts your family in a difficult position.
Here is what can happen without up-to-date documentation:
No one is empowered to make decisions
If you get hurt or sick and become incapacitated, there may be no one legally authorized to make time-sensitive medical decisions or manage your day-to-day finances. Your family would have to go to court to be appointed as your guardian just to help you.
Uncertainty for your loved ones
Without instructions, state law and the courts decide how your assets are handled. This denies your family clarity and control during an already stressful time.
A lengthy and costly process
Probate can be expensive. It typically costs 3-7% of your total estate's value. This process can also tie up your assets for months, leaving your family in financial limbo.
Zero privacy
Generally, you have to share your personal financial information with the courts. That information becomes public record for anyone who wants to see it.
Outdated wishes
If you have documents but haven't updated them after events like marriage, divorce, or buying a home, your current wishes might not be honored. In some cases, the documents could become invalid.
Why everyone needs a roadmap
Regardless of your age or net worth, you need a strategy. It provides control over your money by allowing you to decide how your belongings are distributed. It ensures someone you trust can manage healthcare and financial decisions if you cannot. Most importantly, it offers security. You can rest assured that your family won't have to navigate complex legal processes during a hard time.
Key documents in your estate roadmap
An estate roadmap isn't a single piece of paper. It is a collection of legal tools.
A will
This is the foundation. It outlines how your assets (money, property, belongings) are distributed. You name an executor to manage your affairs and a guardian if you have young children.
Crucial note: A will does not cover jointly-owned accounts or retirement accounts and life insurance with designated beneficiaries. The beneficiary designation supersedes the will.
Example: Let's say you name a sibling as the beneficiary of your 401(k). Later, you get married and start a family but forget to update the beneficiary. If you pass away, that 401(k) goes to your sibling, even if your will says it should go to your partner.
Financial power of attorney (FPOA)
This allows you to designate an agent to handle bills, investments, and taxes if you can't. It can take effect immediately or be springing, which means it becomes active only if you are incapacitated.
Healthcare power of attorney (HCPOA)
This names an agent to make medical decisions for you. Without it, medical professionals may make choices without consulting your family. You can also include advance directives to outline the care you want or don't want.
A revocable trust
A trust explains how you want to manage what you own. It helps your family avoid probate, keeps your finances private, and offers flexibility since it can be changed at any time. It isn't necessary for everyone, but it is a powerful tool in the right situation.
How to get protection without overpaying
You have options, but choosing between them can be tricky.
- Online services: These are often inexpensive but can offer boilerplate solutions that lack personalization.
- In-person attorneys: They offer high personalization but can cost $3,000 or more. You also have the task of vetting them.
We believe the best solution combines personalization, high-quality work, and affordability.
The Facet difference
At Facet, we want to help you protect everything you work so hard for. While the most important thing is simply having a roadmap, we want to make it easier for our members to build theirs.
We have partnered with wealth.com to help you design and implement personalized estate planning. Please note that wealth.com is a separate third-party provider, and their services incur an additional fee outside of your standard Facet membership.
Why this partnership matters:
- Intuitive tech: A self-guided online experience makes the process simple.
- Human support: You have access to live customer support for questions.
- Legal expertise: Experienced attorneys support the process to ensure high-quality, state-specific documents.
- Ongoing monitoring: A wealth.com membership includes updates as your life, finances, and laws evolve (this is separate from your Facet membership fee).
This offering helps Facet members turn advice into action. You can log in to your Facet account and take advantage of the offer directly in your dashboard. If you have any further questions, please don't hesitate to reach out to your planning team.
This partnership is offered exclusively to Facet members. If you aren't a member and want to learn more about the power of financial planning and estate planning, just schedule a call.
