Planning to Pass on Your Legacy

Planning for the future is often something we put off. However, early planning is one of the most important steps you can take to ensure loved ones are taken care of and your wishes are honored in the future. Whether it’s getting your assets and accounts in order or appointing a power of attorney, having a plan in place brings peace of mind and reduces unnecessary complications for those you care about most.  

Here are a few things you can start doing now: 

Have conversations 

If you haven’t already, start having conversations with the people you want to involve in legacy planning. It’s especially important to talk to the key person or people you designate to be in charge of your legacy so they can ask any clarifying questions now.  

Be prepared 

Consider a Power of Attorney (POA) – A General POA allows one or more people, known as an “agent,” to manage money and property on your behalf.  The agent you appoint can be a family member, trusted friend or professional. You can give your agent the ability to act on your behalf at any time for convenience or limit their power to act only in the event you become incapacitated. You can also give the agent broad authority or restrict their authority to certain types of functions. If you designate someone as your agent, you should communicate with them about this important role and your wishes. Some states require the agent to sign an acceptance form before they can act. Note that your agent’s authority ends upon your death. 

List and title accounts – Clearly list every bank or financial institution where you have money or investments for your loved ones. Provide your agent and any persons named as personal representative of your estate or successor trustee of your trust with the documentation and instructions each bank or financial institution may require. Also be sure any bank accounts you may want included in a trust are titled appropriately. Your banker can assist with this. 

Review safe deposit box details – Check your banks’ procedures on how a loved one or a designated legal representative could recover items within your safe deposit box. This may require extra documentation, which you should explain and provide. 

Review Ownership and Beneficiary Designations – To avoid any confusion, make sure you understand how property will pass under any joint ownership arrangements or accounts with designated beneficiaries. Clearly designate beneficiaries for any accounts held in your own name and review those regularly. Also make sure you understand how ownership of assets such as real estate and vehicles will pass.

Update trusts – If you have a trust, make sure it has been “funded” by titling the desired accounts or other assets in the name of the trust. A successor trustee, or the person who typically takes over management of your trust when you become incapacitated or die, may need to provide third parties with specific documentation proving their authority to act on behalf of the trust. Your successor trustee will likely be required to provide the beneficiaries of the trust with a comprehensive inventory of all the trust’s accounts and property. If your information is kept up to date, you should have a helpful preliminary list for your successor trustee to use.

Ask questions 

Start asking your banks and financial institutions questions on what you need to do to be able to provide a smooth transition for your loved ones. You may need to change titles of your accounts, trusts, safe deposit boxes, etc. Preparing these things ahead of time is typically easy and free of charge. 

Preparing your legacy plan early ensures your assets and wishes are handled with care, and leaves a lasting, positive impact on those who matter most to you. 

Speak with your banker about how you can start preparing your legacy for your loved ones.  

This article is for informational purposes only and is not intended as legal, tax, or investment advice. You should consult with qualified professional advisors regarding your own situations. Non-deposit investments are not FDIC insured and may lose value. All investments involve risk, including the possible loss of principal.