The Foundations Of Estate Planning

Estate planning can often feel like an overwhelming process, especially when key preparations are neglected. For federal employees, the stakes can be even higher due to the unique benefits and plans tied to their employment.  Many of these benefits, if overlooked, can leave a loved one in a tough spot.  In fact, it's really beneficial to have legacy planning done BEFORE you retire, so you don't miss some of these benefits during the retirement process.

Here’s a checklist of foundational estate planning documents federal employees should have in place to protect their assets, ensure their wishes are followed, and simplify matters for loved ones.
 

1. Last Will and Testament

This document details how your assets will be distributed after your death.

It also allows you to name guardians for minor children and specify any special instructions. Without a will, your estate will be distributed according to state laws through a process known as "probate", which may not align with your wishes.  Probate can cost your family precious time and incur additional expenses that wouldn't otherwise arise with an estate plan in place.

2. Trusts

There are several different types of trusts that can apply to different situations.  Some trusts are revocable while others are irrevocable.  Each has its place in the planning process.  A trust will help avoid probate court and make settling your affairs much simpler in the end.    

3. Power of Attorney

A power of attorney allows you to assign someone you trust to handle your financial affairs or make healthcare decisions if you are unable to do so yourself due to illness or incapacity.

This document is critical for ensuring your affairs are managed smoothly if you are unable to manage your own affairs. Consider creating both a financial power of attorney and a healthcare power of attorney for comprehensive coverage.

4. Living Will (Advance Directive)

A living will outlines your preferences for medical care in end-of-life situations, such as whether you wish to be kept on life support or opt for palliative care.

Having this document in place ensures that your healthcare wishes are honored and can alleviate the emotional burden on loved ones who might otherwise have to make tough decisions on your behalf.

Professionals who specialize in federal benefits and estate planning can provide valuable guidance tailored to your unique situation. They can help you navigate complex laws, create a will or trust, and ensure that your plan maximizes tax benefits while fulfilling your goals. Their expertise can save you time and prevent costly mistakes.

It's important to have a plan and stick to it!

- Matt Curtis CRPC®
President & Founder | Matt Curtis Financial