Financial Planning When Time Is Short
Estate planning can be difficult even in the best of circumstances. When you're facing limited time, you may not be able to complete a full, traditional planning process – but there are still meaningful steps you can take to ensure your wishes are honored. Here are 10 questions designed to help you prioritize what matters most during this difficult period.
- Who will manage your estate when you pass?
It’s important to decide who will oversee your affairs and carry out your wishes. This usually means naming an executor in your last will, a trustee for any trust agreements and identifying others for specific responsibilities. - Could changes to your plan be challenged later?
If your health is declining, any updates to your estate plan could be questioned on the basis of diminished capacity. To reduce this risk, make sure changes are well-documented and consider involving legal counsel or obtaining medical confirmation of capacity. - Will those in charge know what you own and how to access your accounts?
Ensure the people responsible for carrying out your wishes have the information and authority they need. This includes access to financial accounts, online platforms and other digital or physical property, which may require reviewing or updating your power of attorney. - Do your family members or other beneficiaries know what to expect?
Confirm who is legally or intentionally designated to receive your assets after your death. Communicating your intentions clearly, or providing written summaries, can help reduce confusion and prevent conflicts. - If you become incapacitated before death, who will make decisions for you?
Verify who is legally empowered to make financial and healthcare decisions if you can no longer do so yourself. Review existing authorizations such as powers of attorney and advance directives, and update or create them promptly. - Are there wealth transfer strategies you can put into motion now?
Explore whether making final gifts or transferring certain assets could reduce overall estate and gift tax exposure and simplify administration for your heirs. Your advisor can help identify which steps are still practical. - Do you have a plan for personal property not specifically named in your will?
Clarify your instructions for distributing personal belongings and consider whether giving certain items away now could simplify matters later. Document access codes, update estate planning documents and ensure everything is clear to prevent confusion. - Are your wishes for end-of-life care, the disposition of remains and funeral arrangements documented?
Verify that your preferences for medical care, handling of remains and memorial arrangements are clearly documented and communicated. Review advance directives and related instructions to ensure your wishes are honored without confusion.
Addressing these questions can help guide you through critical decisions that aren’t easy but ensure the clarity of your wishes during an exceptionally difficult time. Your Baird Financial Advisor team is here to support and guide you and your family every step of the way.
This information has been developed by a member of Baird Wealth Solutions Group, a team of wealth management specialists who provide support to Baird Financial Advisor teams. The information offered is provided to you for informational purposes only. Robert W. Baird & Co. Incorporated is not a legal or tax services provider and you are strongly encouraged to seek the advice of the appropriate professional advisors before taking any action. The information reflected on this page are Baird expert opinions today and are subject to change. The information provided here has not taken into consideration the investment goals or needs of any specific investor and investors should not make any investment decisions based solely on this information. Past performance is not a guarantee of future results. All investments have some level of risk, and investors have different time horizons, goals and risk tolerances, so speak to your Baird Financial Advisor before taking action.