Legacy and estate planning play a crucial role in managing your assets and seeking to ensure your life wishes are fulfilled. While it may not be the most exciting aspect of financial planning, it is one of the most important, especially when it comes to the well-being of your loved ones in your absence.

Hypothetical Example: Incomplete Estate Plan Nightmares—the Story of Robert and Emily

Take the story of Robert and Emily as a prime example. A few years ago, tragedy struck this couple unexpectedly. Robert suddenly passed away from a heart attack, leaving Emily in a state of shock and grief. As Emily began to navigate the complexities of managing their finances and estate, she discovered that Robert had neglected to create a comprehensive estate plan.

The absence of a will meant that Emily had to endure a lengthy and costly probate process. The court’s involvement prolonged the distribution of assets, leaving Emily in financial limbo. To make matters worse, without clear instructions, disagreements arose among their children regarding the division of assets, causing emotional strain and family discord.

To compound Emily’s troubles, Robert had not updated the beneficiary designations on his retirement accounts and life insurance policies. The outdated beneficiaries listed were his parents, who had sadly passed away years ago. Consequently, Emily had to engage in complex legal battles to prove her entitlement to these assets, incurring substantial legal fees and adding further stress to an already challenging situation.

Emily also faced unexpected tax liabilities due to the lack of tax planning in their estate plan. Without strategies to manage the tax burden, she was left with significant tax obligations that depleted their savings and financial security.

Moreover, Robert had never discussed his healthcare wishes with Emily, nor had he appointed her as his healthcare proxy. When Robert’s medical crisis struck, Emily struggled to make critical healthcare decisions on Robert’s behalf, as she did not have the legal authority to do so. This lack of preparedness added additional emotional and logistical burdens during an already trying time.

Emily’s experience served as a poignant reminder of the importance of comprehensive estate planning. It highlighted the need for clear instructions, updated beneficiary designations, tax considerations, and healthcare directives. The absence of these elements left Emily vulnerable to financial and emotional turmoil, underscoring the value of proactive planning to protect loved ones during life’s unforeseen events.

In the end, Emily was determined to learn from her experiences and ensure that her own estate plan was meticulously crafted, covering every aspect to safeguard her children’s future and spare them the frustrations she endured. She sought professional guidance, engaging an estate planning attorney who helped her navigate the complexities and create a solid legacy plan that would provide financial confidence for herself and her loved ones.

So how can you do the same? Follow the tips in this step-by-step checklist for effective legacy planning as a couple.

Step-by-Step Checklist for Effective Legacy Planning as a Couple

  1. Create a Balance Sheet

Begin the legacy planning process by objectively assessing your financial situation. Prepare a comprehensive balance sheet by listing all your assets, including real estate, personal valuables, bank accounts, investment accounts, retirement plans, business interests, and death benefits. Deduct your liabilities, such as credit card debt, mortgage, vehicle loans, and personal loans. This exercise will provide an overview of your net worth and identify assets to pass down or debts to manage.

  1. Determine Required Plans

Ensure you have essential documents in place to establish a strong foundation for your legacy plan. At the bare minimum, everyone should have:

  • Last Will and Testament, which details how you want your assets distributed to heirs and charitable organizations.
  • Power of Attorney, which authorizes someone of your choosing to act on your behalf if you’re incapacitated.
  • Health Care Directive, which details what kind of care you want should you become incapacitated.
  • Living Will, which authorizes someone to make medical decisions for you if you can’t, based upon what’s stipulated in your health care directive.

Any of these documents that you don’t have, you should get working on.

If you have any older versions of these documents that you haven’t looked at in a few years, you should review them to make sure they’re up to date.


  1. Open Communication with Your Spouse

Discussing your legacy wishes with your spouse is crucial for alignment and clarity. Initiate open dialogue and address key questions, such as organizing important documents, choosing an executor, determining beneficiaries, considering charitable contributions, outlining medical wishes during incapacitation, and deciding living arrangements for the surviving spouse. Effective communication helps ensure that both partners are aware of each other’s desires and can make informed decisions.


  1. Seek Professional Guidance

Estate planning can be complex, requiring legal and financial expertise. Engage professionals who specialize in estate planning and financial planning both to assist you in finalizing the details and facilitate challenging discussions.

Legacy planning and effective estate planning are essential for managing your assets, fulfilling your life wishes, and providing your loved ones with ease during challenging times. By following this step-by-step checklist, you can seek to establish a robust legacy plan, seeking to ensure the smooth transfer of your assets, addressing incapacitation concerns, and securing a prosperous future for your family.

Living Your Best Life Now and Aiming to Secure Your Wishes in Your Legacy and Estate Plans for the Future

At Falbo Wealth Management, we firmly believe that securing the best life possible involves creating a comprehensive plan that extends your legacy and provides comfort to your loved ones during challenging times. To achieve this important goal, we encourage you to address the tough questions and collaborate with us to develop a preliminary version of your legacy plan.

If you bring us your “rough draft” legacy plan, we can assist you in refining and finalizing the crucial details. We can facilitate any difficult discussions that may arise and connect you with trusted legal professionals who specialize in executing estate plans accurately and efficiently. You are under no obligation to use the services of any facilitated third-party legal professional, and may choose the services of any legal professional.

With our guidance and experience, and working with your legal professional, you can strive for confidence that your legacy will be upheld as you planned for when the time comes and that your spouse’s grief will not be further complicated by unfinished estate planning issues. Working together, we’ll aim to alleviate any potential burdens on your loved ones, ensuring a smoother transition and preserving the lasting impact of your hard work and values for years to come.

To learn more about our life-centered approach to financial planning, I encourage you to watch my webinar on Financial Life Planning here. And when you’re ready,  let’s meet and start planning for what’s next.

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Falbo Wealth Management LLC and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.

This is a hypothetical example and is not representative of any specific investment. Your results may vary.