The 5 Most Overlooked Items in Estate Planning: Are You Missing These Crucial Steps?

Estate planning may not be the most exciting topic, but it’s one of the most important steps you can take to secure your future—and your loved ones'. Most people think of estate planning as simply writing a will, but there are several essential pieces that often get overlooked. Missing these steps can lead to complications, unnecessary costs, and even family disputes down the road. Let’s break down the five most overlooked items in estate planning and why you should address them today.

1. Digital Assets

When you think of assets, physical possessions like your home or car may come to mind, but what about your digital life? In today's world, many of us have vast digital assets—ranging from email accounts and social media profiles to online banking, digital photos, and even cryptocurrency. If you don't include instructions for these digital assets in your estate plan, your family may face legal hurdles trying to access or manage them.

How to Address It:

Create a "Digital Asset Inventory" that includes login information for your accounts and clear instructions on how you’d like these assets to be managed after you’re gone. Some estate planning services, like GoodTrust, even offer a Digital Vault to help organize and secure these details.

2. Healthcare Directives

While it may be uncomfortable to think about, having a healthcare directive in place is essential for ensuring that your medical wishes are followed in case you’re unable to communicate them yourself. This document outlines what kind of care you do or don’t want if you’re incapacitated, and appoints a person to make medical decisions on your behalf (a healthcare proxy).

Why It’s Important:

Without a healthcare directive, your loved ones could face confusion or even legal battles over your medical care. They may not know your preferences, which can make a difficult situation even harder.

3. Beneficiary Designations

While your will may spell out how your assets should be distributed, it doesn’t cover everything. Many financial accounts—like retirement plans, life insurance policies, and pensions—require you to name beneficiaries directly on the account. These designations supersede your will, meaning that if you forget to update them, assets could go to an unintended person (such as an ex-spouse).

What to Do:

Review your beneficiary designations every few years or after major life events like marriage, divorce, or the birth of a child to ensure they align with your current wishes.

4. Guardianship for Minor Children

If you have young children, one of the most important aspects of your estate plan is designating a guardian who will take care of them if something happens to you. If you don’t name a guardian, the decision could be left to the court, which may not align with your preferences.

How to Plan for This:

When choosing a guardian, consider factors like the individual’s values, parenting style, and financial situation. It’s also a good idea to have a conversation with the potential guardian beforehand to ensure they’re comfortable with the role.

5. Power of Attorney

A Power of Attorney (POA) is a legal document that allows someone you trust to handle financial and legal matters on your behalf if you’re incapacitated. This could involve paying bills, managing investments, or even selling property. Many people overlook this step, but it’s crucial for ensuring your affairs are in order if you’re unable to manage them yourself.

Why It Matters:

Without a POA, your family may have to go through a lengthy and expensive court process to gain control of your finances, which can add stress during an already difficult time.

Take Action Today

These overlooked items can have major consequences if left unaddressed. Estate planning is about more than just dividing up assets—it’s about protecting your digital life, your healthcare decisions, and your loved ones. By including these crucial steps in your plan, you’ll ensure that your wishes are followed and that you’re leaving your family with peace of mind.

Whether you're just starting to think about estate planning or need to update your current plan, now is the time to act. Services like GoodTrust offer comprehensive estate planning tools that make the process easy, ensuring that no important step is overlooked.

Ready to secure your legacy? Visit www.mygoodtrust.com to get started today.