Nobody likes to think about their own mortality, but it is important to be prepared for anything. As a solopreneur, you are the captain of your own ship, so it is even more important that your heirs are cared for in any situation.
On this episode of Solopreneur Money, you’ll learn exactly what you should be thinking about as you draw up an estate plan. Make sure to listen until the end so that you can find out how to get a FREE worksheet to help you organize your wishes to ensure that you don’t leave anything out.
You will want to hear this episode if you are interested in…
- The 5 topics you need to cover in your will [2:52]
- Learning how I planned my estate [6:38]
Do you have an estate plan?
Do you have a plan for your kids and your belongings in the event of your death? Do you know who will make decisions for you if you become incapacitated? Do you have a last will and testament in place? I ask these questions of all of my new clients. However, most people aren’t prepared for an unforeseen event that could incapacitate them or cause their death. Why? Because most people don’t like to think about their own mortality.
5 considerations when you draw up your will
You know you need to have a will in place, but do you know all the pieces you should consider when drawing one up? You can create your own last will and testament by using an online template, but I think it is worth the $500-$1000 you will spend to have an attorney get it done right. Consider each of these 5 areas so that when you draw up your will it will go quickly and smoothly.
Kids – It is important to discuss this with your spouse. You will want to decide together who will raise your kids if you both pass. Make sure to consider if the person you choose is up for the task. You’ll also want to think about whether the kids would have to move to a different city and if you would need to provide additional funds to help with the transition.
Money – You may want to draw up a trust for your heirs. There are 2 types of trusts. An inter vivos trust is a living trust and can be established during your lifetime. A testamentary trust is a trust that will be established upon the event of your death.
Power of attorney – Who will handle your affairs if you become incapacitated. It is important to remember that there are 2 types of power of attorney. An attorney in fact is created for the present and will go into effect as soon as the document is signed. A springing durable power of attorney goes into effect only in the event that you are deemed incapacitated by a doctor.
Healthcare power of attorney – I call these the pull the plug orders. You should also consider whether you would like to be an organ donor. Discuss your wishes with your spouse and get them down on paper.
Beneficiaries – Check the primary and secondary beneficiaries on your accounts periodically. Are they up to date? Make sure your current wishes are stated on all of your retirement accounts.
Download this FREE worksheet to get started
Listen in to hear how Melissa and I have planned out our own situation for our family. Thinking about this now will reduce the stress during an untimely event. To get you started I have created a worksheet that will help you get the ball rolling. You can download this worksheet at https://www.gabenelsonfinancial.com/resources/. While you are there at the resources page of my website, make sure to subscribe to the newsletter to get all the latest worksheets and templates that we create. These will help you get a handle on your financial situation so that you can create the life you want.
Resources & People Mentioned
- Download the FREE estate planning worksheet here: https://www.gabenelsonfinancial.com/resources/
Connect With Gabe Nelson
- FREE Downloadable Resources at https://www.gabenelsonfinancial.com/resources/
- EMAIL: Gabe (at) GabeNelsonFinancial.com
- Follow Gabe on LinkedIn
- Follow Gabe on Twitter: @GabeNelsonCFP
- Follow Gabe on Facebook
- Follow Gabe on Instagram: @GabeNelsonCFP
Audio Production and Show notes by
PODCAST FAST TRACK