Show Your Love This Valentine’s Day

Valentine’s Day is all about celebrating the people you love most. While flowers and chocolates are thoughtful, one of the most meaningful gifts you can give is peace of mind. By making sure your estate plan is organized, accessible, and up to date, you offer your loved ones clarity and security for the future, a gesture that speaks louder than words.

Think of your estate plan as a love letter to your family and to the causes closest to your heart. Here are four vital steps to take for your benefit and theirs:

1. Make or Update Your Will
   A properly executed will or living trust will speak powerfully after your passing. An estate planning attorney can provide personalized guidance and ensure that your estate plan meets all legal requirements. This Will Planning Wizard will help prepare you for meeting with an attorney.
   
   Decide who will serve as guardians for your minor children or pets. Be specific when dividing personal property and consider including charities, such as Drexel University, in your will. Carefully choose your executor: someone who is likely to outlive you, is able to invest the time and travel that may be needed and is respected by your beneficiaries.
   
   
2. Update Your Beneficiaries
   Your will or trust doesn’t normally cover assets such as retirement plans, life insurance policies, commercial annuities and donor-advised funds. Review the list of beneficiaries for these assets regularly and be sure to consider tax implications for the recipients. (For example, the proceeds from traditional IRAs may be taxable to heirs, making them an excellent choice for charitable gifts.)
   
   
3. Appoint Decision-Makers for When You Cannot
   An updated health care power of attorney and advance directive are critical parts of any estate plan. These documents ensure that your medical treatment decisions, including any end-of-life decisions, are honored and name the person(s) who will act on your behalf.
   
   Equally essential is a durable springing power of attorney, which is designed to take effect if/when you should become incapacitated and will remain in effect while you are unable to act for yourself. Who will have access to your tax returns, and financial/brokerage accounts, and oversee your government benefits (like Social Security), real estate holdings or business?
   
   It’s also important that you choose someone to serve as your “digital executor.” In today’s digital age, it’s essential to leave instructions for logins, passwords and multi-factor authentication methods to allow access to your online financial and social media accounts. Updating these appointments and consolidating this information ensures that your loved ones are not left guessing during difficult times. 
   
   
4. Make Your Wishes Crystal Clear
   Prepare a well-marked file with your plans for your loved ones to access and make sure they know where to find it. Include a statement or legacy letter that explains why you made the decisions you did. Share your plans with family members, including preferences for your funeral and burial; they will appreciate the clarity now and later.

Why Now?

Life changes like marriages, births and moves — as well as recent federal tax law changes — can affect your estate plan. Valentine’s Day is the perfect reminder to show your love in a way that lasts long after the flowers wilt or the chocolates are gone.

Questions? We’re Here to Help

We have helped people explore tax-smart estate planning options that minimize taxes for loved ones and maximize charitable impact, and we are ready to help you too. Contact Carol Neilson, director of development in Drexel’s Office of Gift Planning, at 215.895.1882 or giftplanning@drexel.edu.