You may not be subject to estate tax, which is applied to estates with values that exceed the exclusion limit set by law, but that does not mean you should avoid estate planning.
Here are five tasks for everyone to consider that fall under estate planning.
Check your beneficiaries. If you have filled out beneficiary designation forms for your financial accounts (such as your life insurance or 401(k) plan), they override any other estate planning documents, so review them and ensure they are up to date.
Create two wills. That is correct: two wills. You need a living will to indicate how you would like to be cared for if you become unable to express your wishes, and you need a last will and testament to explain how you’d like your assets distributed after your death.
Draft two powers of attorney. You also need two powers of attorney to indicate who will handle your affairs if you are incapacitated. One will specify who will handle healthcare decisions, and another will specify who will handle financial matters. You can designate one person to handle both.
Designate guardians if necessary. If you have children, you will want to name a guardian to look after them (day to day and financially) if you are unable to care for them.
Name an executor. When you die, your executor will make sure your assets are distributed in accordance with your will. You can specify a family member or a professional, such as a bank trust officer.
Just be sure to tell your executor that you have named him or her.