Estate planning involves three basic components: Medical decision-making, which may involve treatment decisions or end-of-life decisions; Asset distribution; and Guardianship for minor children.
Medical Decision-Making
You should designate someone to make healthcare decisions if you become incapacitated. For unmarried couples, this requires explicit documentation since spouses have automatic authority by default in many jurisdictions.
Creating a healthcare power of attorney ensures the person you trust will make these important decisions on your behalf.
Asset Distribution
Asset distribution covers bank accounts, investment accounts, property, insurance policies, vehicles and every other asset you own at the time of passing. Multiple instruments can accomplish this, including wills and trusts.
Consider all the ways you hold assets:
- Bank and brokerage accounts
- Real estate
- Retirement accounts (401k, IRA)
- Life insurance policies
- Vehicles and personal property
- Business interests
Guardianship of Minor Children
Parents must formally designate guardians; without such designation, courts determine guardianship, potentially contrary to parental wishes. This is one of the most important decisions parents make in their estate planning.
Planning Your Will
A will is a legal document that spells out the details of how your estate is to be handled. Selecting your executor is the most critical decision in will planning.
Your executor will be responsible for:
- Filing your will with the probate court
- Notifying creditors and paying debts
- Managing estate assets during probate
- Distributing assets to beneficiaries
- Transferring securities to heirs
Transferring Securities to Beneficiaries
When your executor needs to transfer stocks, bonds, or other securities to your beneficiaries, they’ll likely need a medallion signature guarantee. This is where many executors encounter unexpected delays—banks often decline these requests.
eSignature Guarantee helps executors complete estate securities transfers efficiently, even when banks can’t provide the guarantee.