Get an Estate Plan Together: Kurt Rupprecht of Northwestern Mutual

Over the past several weeks we have heard from Wealth Management Advisor Kurt Rupprecht about financial concepts for new families.  Today’s topic is all about the details of getting an estate plan together.  

Don’t forget to put key estate planning documents in place

For many of us, when we think of estate planning, we think of it as something older or rich people need.  But that’s simply not true. Everyone needs an estate plan. Here's why.

Estate planning is about making sure your wishes are known and honored if you die or become so ill you cannot make your own decisions.  And that can involve everything from making sure your baby receives a family heirloom to ensuring your children will be cared for by whoever you designate. 

So... what do you need as part of your estate plan?

Here's what Kurt Rupprecht of Northwestern Mutual’s K Street Financial Group recommends: All adults, meaning anyone 18 years and older, should have the following three essential documents: 

The first is a health care power of attorney. With this document, you name someone as your agent to make health care decisions on your behalf if you become incapacitated.

Similar to a health care power of attorney is a living will.  This is sometimes called a health care directive. The living will is given directly to your doctor and clearly states how much or how little medical intervention you'd want if, for example, you get in an accident or become so ill that you can't communicate them yourself. 

And finally, you'll want to establish what's called a financial power of attorney. Much like a health care power of attorney, this document names a person you trust as your agent to manage your personal financial affairs - like paying bills or preparing tax returns - if you become unable to do it yourself. 

Now, if you are married, or have a partner, you'll want to do a few additional things.  

First, most choose their spouse to be a power of attorney for health care and for finances. So consult with an estate planning attorney to update those documents, as needed.  You'll also want to update the beneficiary designations you might have on assets like life insurance policies or retirement accounts. 

And, you'll want to establish a will or a trust that spells out who gets what after you're gone.

All of which brings us to the stage of life you're in - which is becoming a parent. When you have a child, the single most important estate planning step you can take is making sure that your living will names a legal guardian for your child (or children). 

Who do you want to take care of your child if something should happen to you? It's not enough to simply share your intentions with the person you want to be the guardian and make a note of your instructions. Some states won't recognize estate planning documents that are handwritten. So when consulting with an estate planning attorney, make sure that your will nominates an appropriate guardian for your child should something happen to you.  Generally, the other parent is named as the guardian, with a third, trusted individual named as standby guardian, in case something happens to both parents.

“Once you have children you’ll also want to take yet another look at your powers of attorney, living will, beneficiary designations and all of your other estate planning documents - to make sure they reflect your wishes for your growing family,” according to Kurt Rupprecht.

To connect with Kurt Rupprecht to start making your financial plan please visit www.kstreetfinancialgroup.com