Estate Planning Beyond Finances: 70% of People Overlook Sentimental Assets

Estate planning is a critical process that involves more than just financial considerations. It encompasses a range of tasks, from assigning beneficiaries to financial accounts to crafting a will and passing on a house. However, many people overlook the non-financial aspects of estate planning, which can lead to significant issues. Bette Capaldo, chief operating officer of an estate planning platform, highlights that sentimental and heirloom pieces, such as family jewelry or a mother’s recipe book, are just as important as financial assets. Disagreements over these items can cause as much familial strife as disputes over money.

Capaldo emphasizes the importance of having the proper documents in place to avoid such disagreements. Without clear instructions, cherished items may end up with someone unexpected or undeserving, leading to delays in the inheritance process, especially if legal proceedings are involved. Estate planning can mitigate these issues by clearly outlining who gets what, including intangible assets like family heritage information, important family beliefs and values, and digital assets such as social media accounts and online writing.

Beyond dictating who gets what, it is crucial to keep all these items accessible to future generations. This can be achieved by storing them in one place, either digitally or physically, with multiple copies in different locations for safety. For example, physical photos can be scanned and stored online. Capaldo notes that customers use estate registry tools to store old family recipes or leave voice messages for their grandchildren, highlighting the emotional impact of these actions.

To limit potential strife, Capaldo advises families to start the estate planning process as soon as possible. The three basic documents to create are a will, a power of attorney, and a health care directive. These can be created inexpensively online, without the need for a lawyer or financial advisor. The key is to start the process and develop the plan over time. Once the documents are created, they should be kept organized and accessible in one place, making it easier to update and manage them over time.

Capaldo recommends updating these documents regularly, especially if there are changes in life circumstances. There are online services that provide a centralized place for all estate planning documents, but it is essential to have a backup in case the service is no longer available in the future. Alternatively, people can visit an estate planning attorney or keep directives in their homes, ensuring that someone trusted knows where they are stored.

When looking for an estate planning attorney or advisor, Capaldo suggests asking family and friends for recommendations. Word of mouth is often the best way to find someone trustworthy. It is also important to interview a few candidates before settling on someone who feels comfortable discussing very sensitive information, as your legacy is at stake.