Over a lifetime, we accumulate a wide range of assets—some personal, others real. Personal assets include money, jewelry, cars, art, furniture, and other valuables. Real assets often mean the home you live in, rental properties, or business buildings. Together, these represent wealth that can and should be passed down to the next generation.
Unfortunately, only 29% of African Americans have a will or trust in place to ensure their assets are transferred to their children or loved ones.
A will or trust is among the most important tools of estate planning. Without them, the assets you worked so hard to build can be lost to courthouse sales, tax liens, or even passed on to distant relatives you barely know. In the absence of proper planning, your family may never see the wealth you intended for them.
The good news: you can prevent this outcome. An estate planning attorney can guide you through the process of deciding how your assets should be distributed and help you execute the proper documents to ensure your wishes are carried out. Contrary to what many believe, hiring an attorney is not prohibitively expensive—it can cost less than a short vacation. And while estate planning is often thought of as something only for the wealthy, the truth is everyone has assets worth protecting.
The cost of not planning, however, can be devastating. Dying without a plan can lead to:
- Lengthy and expensive courtroom battles;
- Damaged family relationships;
- Loss of property value due to neglect or theft;
- Court-ordered guardianship for minor children; and
- Blindly trusting others to “do the right thing.”
How to Begin Estate Planning
Start by getting organized:
- Identify your assets—personal property, land, and real estate.
- Decide who should inherit each asset.
- Take stock of your debts.
- Name a guardian for your minor children.
- List your investment and bank accounts.
- Confirm the beneficiaries of your life insurance.
- Review retirement accounts (401(k), 403(b), IRAs, annuities) and update beneficiaries.
- Note any joint bank accounts.
Steps to Leave a Legacy
Once you’ve taken inventory, act on the following:
- Contact an estate planning attorney.
- Execute a will.
- Establish a trust to transfer certain property immediately.
- Create a power of attorney naming someone to act on your behalf if you become incapacitated.
- Complete advance directives to outline your healthcare wishes.
Finally, remember that estate planning is not a “one and done” process. Life changes—marriages, children, divorces, new property—often mean your documents will need updating. Review your estate plan regularly to make sure your assets are still going where you want them to go.
You’ve worked hard for what you have. Protect it. Plan wisely. After all, you can’t take it with you.