Estate planning should be part of your retirement plan

January is the ideal time to consider your financial planning and that includes estate planning. Regardless of career and earning power, the reason most of us work is the same. We want to provide for ourselves and those we love. A well-prepared estate plan helps ensure this happens—even if something happens to you, and even if you are not rich.

Estate planning can be an all-inclusive, tax-saving financial plan for the preservation of your assets when combined with savings, investments and retirement; the protection and continued operation of a business; the support and care of your children; and much more.

To develop an estate plan that is best aligned to your interests, you should work with a reputable lawyer, skilled fiduciary specialist and other professionals who have experience and expertise in wealth transfer planning, custom trust solutions, trust administration, estate tax minimization, power of attorney/living will, document review, beneficiary designation, titling of assets and real estate management services.

Here are some basics that should be covered in your estate plan:

· A will, the written document that provides for the transfer of your property upon death.

· Assignment of power of attorney, which gives the person you name the authority to manage your financial affairs if you are unable to do so.

· Beneficiary designations; If you have not named a beneficiary of your estate, a court is empowered to manage your possessions.

· A letter of intent, which specifies to the beneficiary how you want your affairs carried out after your death or incapacitation.

· A healthcare proxy that authorizes another person to make medical decisions on your behalf.

· Guardianship designations; as is the case with the distribution of your assets, you do not want the court making decisions about whom your children will live with after your death.

When reviewing this list, it becomes very clear that estate planning is not just for the wealthy. In fact, a child with a savings account technically has an estate, because an estate is nothing more than possessions of value that can be transferred to another individual or entity upon death. So essentially everything you own—property, bank accounts, investments, business interests, retirement benefits, IRAs, insurance policies, fine art, collections, jewelry, clothing and other personal belongings—comprises your estate.

An estate plan determines to whom and when the proceeds of your estate will be distributed in a way that maximizes the value of the estate by minimizing and reducing taxes, liability and other expenses.

So make it part of your new year’s resolutions to earn peace of mind by putting your estate plan in place.

Dan Emmons manages the Woodinville branch.