In a powerful financial discussion, Joe Anderson and Alison Ali outlined the key components of a solid estate plan and highlighted the risks of leaving things to chance. Whether you’re 35 or 75, have a small condo or multiple properties, a smart estate plan ensures your family is protected, your wishes are honored, and your assets are transferred efficiently.

Here’s what every household needs to know.

1. Why Estate Planning Matters More Than You Think

More than 70% of Americans have incorrect or missing estate plans. That means their assets will be sorted through probate—a public, expensive, and slow process that affects over 3 million people each year and costs an estimated $2 billion in fees.

Worse still, some estates lose up to 50% of their value due to taxes and legal costs.

Creating an estate plan now helps:

• Bypass the court system
• Keep your affairs private
• Save your heirs time, money, and confusion

2. Wills vs. Trusts: Know the Difference

A will outlines who gets what—but still goes through probate.

A trust avoids probate altogether. It lets you:

• Transfer assets privately
• Handle complex family situations (like blended families or businesses)
• Provide flexibility and protection beyond death

Don’t forget the paperwork:

• Power of Attorney for finances
• Healthcare Directive for medical decisions
• HIPAA Authorization to grant access to medical records

3. Common Estate Planning Mistakes

Avoid these pitfalls that can derail even the best intentions:

• Dying without a plan (intestate) leaves everything to the courts
• Relying only on a will when a trust is needed
• Not funding a trust—if your assets aren’t titled correctly, the trust doesn’t work
• Giving away property before death, triggering avoidable capital gains taxes
• Joint ownership mishaps, such as assets going to unintended beneficiaries or being seized by a co-owner’s creditors

Regular updates are critical—especially after marriage, divorce, a new child, or buying property.

4. Planning for Your Children’s Future

Estate planning isn’t just about money—it’s about people.

For parents, your plan should include:

• Guardianship instructions for minor children
• How and when funds should be used (e.g., education, housing, health)
• Naming trustees or guardians who are responsible, capable, and ideally local

Don’t assume kids want to keep the house. Clarify with them now, and document your decisions.

5. Update Every 3–5 Years

Tax laws change. So does life. That’s why Alison recommends reviewing your plan every few years or after major events like:

• Marriage or divorce
• A child turning 18
• Buying or selling a business
• Inheriting money or property

Your plan is only as good as its last update.

6. Everyone Has an Estate Plan—Even If You Don’t Write One

As Alison noted, if you don’t make an estate plan, the state has one for you. That often means:

• Delayed distributions
• Higher legal fees
• Misaligned outcomes (e.g., ex-spouses or distant relatives inheriting your assets)

Creating your own plan ensures you—not the courts—decide what happens.

7. Powers of Attorney and Healthcare Directives

These documents are essential while you’re still alive but unable to act:

• Financial Power of Attorney: Who manages your money if you’re incapacitated?
• Healthcare Power of Attorney: Who makes medical decisions?
• Living Will: What are your wishes for end-of-life care?

You can set these to activate immediately or only upon incapacity (“springing”). You can also require multiple agents to act jointly.

8. Don’t Forget Your Digital Assets

Your estate plan should include instructions for:

• Cryptocurrency wallets and NFTs
• Email and cloud storage
• Social media accounts (e.g., Facebook legacy contacts)

Without clear directives, these assets could be lost forever—or fall into the wrong hands.

9. Talk to Your Family—Before It’s Too Late

Discussing estate plans can feel uncomfortable—but silence causes more problems.

Make sure your loved ones know:

• What your plan includes (not necessarily dollar amounts)
• Where your documents are stored
• Who your attorney, trustee, or executor is

Clarity now prevents chaos later.

10. Including Pets in Your Plan

Yes, you can—and should—plan for your pets.

Designate:

• A guardian who is willing and able
• A trust or account to cover their care
• Specific instructions for medical needs and routines

Joe noted that some people leave entire estates to pets. You don’t have to go that far—but make sure they’re not forgotten.

11. Understand What Happens to Pensions and Annuities

Not all pensions and annuities pass on to heirs. It depends on the structure:

• Life-only annuities stop at death
• Joint or survivor options continue paying a spouse or beneficiary
• Period-certain payouts guarantee income for a set time, even after death

Make sure beneficiaries understand what’s available—and what isn’t.

12. Get Organized with the Right Tools

Joe and Alison recommend tools like:

• Estate Planning Organizer
• Survivor’s Guide

These documents help you gather account information, key contacts, and final wishes—all in one place. They’re available through their website and offer peace of mind to both you and your heirs.

Final Thoughts: Start Now, Adjust Later

Estate planning isn’t about how much you have—it’s about protecting what matters.

Whether you’re leaving behind a house, a retirement account, or a digital empire, creating a comprehensive, updated, and thoughtful plan ensures your loved ones are cared for and your legacy lives on—just the way you want.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

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