7 Estate Planning Steps to Take Now So Your Loved Ones Aren’t Left Guessing

Estate planning isn’t just for the wealthy or elderly. No matter your age or bank account size, preparing is an act of love that replaces potential chaos with peace. Only 27 percent of Black Americans have a will, but with a few simple steps, you can ensure your wishes are fulfilled rather than replaced by a GoFundMe campaign.

The Root interviewed Asalyn Coachman, JD, a financial advisor with Coachman Financial, who has helped hundreds of families plan ahead. These practical steps can protect your legacy.

Organize Accounts and Documents

Don’t send your family on a financial scavenger hunt. Centralize everything, but not in your junk drawer. Create a document that captures bank accounts, investment information, credit cards, annuities, retirement accounts, insurance policies, mortgage loans, car loans — all the things.

Coachman recommends keeping the document in a fireproof safe. Avoid safe deposit boxes, which can be difficult to access. Include a list of key advisors, such as your tax preparer, financial planner and attorney. Be sure a trusted person has the combination or knows where the key is.

Confirm Primary and Secondary Beneficiaries

Don’t let the state or the wrong person inherit your legacy. From your checking account to your 401(k) and living trusts, Coachman advises naming primary and secondary beneficiaries to avoid issues if your primary beneficiary dies. Also, update these records promptly after a divorce or a beneficiary’s death to keep your assets out of legal limbo.

For bank and investment accounts, a Transfer on Death (TOD) designee allows your assets to pass directly to the person you name, bypassing probate and ensuring uncomplicated access.

Do Not Name Minors as Beneficiaries

“Don’t name a minor as a beneficiary on anything,” Coachman emphasized. Children cannot legally accept the money, and she advises that the court must use your estate’s money to appoint a guardian — something you vehemently want to avoid.

Instead, name a trusted, responsible adult to manage the money. But choose wisely. Coachman warns that a moral obligation does not equal a legal obligation. Without a formal trust, your life savings could be gambled away on a blackjack table.

Document Your Monthly Expenses

List your monthly cash flow, including mortgage, rent, utilities, car payments and subscriptions, so your family knows what to pay and what to cancel. No one wants that autopay gym membership to drain the account.

Designate Someone to Control Social Media Accounts

To protect your digital legacy and minimize the risk of hacking, create a master list of your social media and online account passwords. Store this list securely with your estate documents and share access with a trusted person.

Coachman recommends using a free password manager and, where possible, designating a “legacy contact” on platforms that offer this feature so someone you trust can manage or close your accounts when you’re gone.

Get Estate Planning Consultation

If you have anything in your name alone, from cars to old bank accounts, you need a plan to keep them out of probate. Coachman notes that many attorneys offer a free initial consultation to help you determine if you need a will, power of attorney or a trust. “If you plan on the front end, it makes it easier for your family on the back end,” she said, emphasizing the importance of ensuring assets are passed directly to loved ones instead of sitting in frozen accounts.

Call a Family Meeting

“The best thing you can do is have a family meeting,” Coachman said. Whether in person or over Zoom, clarify your wishes from burial or cremation to organ donation. Explain exactly how final expenses will be paid and ensure one local person has access to your home. You don’t want the police busting a lock just to feed a pet or access your documents.

Ultimately, organizing your estate is a final act of love that protects the assets you’ve worked hard for. “It’s your parting gift to your loved ones who are going to be grieving,” Coachman said. “You want assets to go to the next generation efficiently.”