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A Guide to Estate Planning

A Financial Advisor’s Guide to Estate Planning: With Downloadable Checklist

Simply put, estate planning is crucial for everyone. It safeguards your wishes for the future. In harmony with a robust retirement plan, estate planning eliminates any concerns about the future management of your finances and, most importantly, the security and welfare of your loved ones.

As a financial advisor, I often observe how a carefully considered estate plan offers comfort and confidence throughout life. This guide aims to provide you with that same peace of mind. We’ll outline an estate plan, its core elements, and key timing considerations for starting and revising it.

What is an Estate Plan?

An estate plan is a compilation of legal documents outlining an individual’s wishes regarding the management of their estate in the event of their death or incapacity.

Through a formal estate plan, you maintain legal control over allocating and distributing your assets (e.g., cash, real estate, investments, and personal property).

If you are temporarily or permanently incapacitated, an estate plan designates who will handle your affairs, such as healthcare decisions and guardianship for dependents.

A strong estate plan contains the following designations and legally binding decisions:

  1. Powers of Attorney | Who can make decisions on your behalf?

    2. Assign a trustworthy Power of Attorney (POA) to manage your affairs if you lose the ability to make decisions for yourself due to illness, injury, mental incapacity, or death. Typically, you’ll designate two POAs, though the same individual may handle both roles:

    • Financial POA
      Understands your financial goals and assumes responsibility for managing your bills, investments, and general financial obligations.
    • Healthcare POA
      Also known as a Medical Proxy, this individual makes medical decisions, communicates with healthcare providers, and advocates on your behalf. They must know your stance on end-of-life treatment and any terms outlined in your advanced medical directive.
  2. Beneficiary Designations | Who will automatically receive assets?

    3. Name specific individuals or entities (e.g., non-profits) to inherit assets from your financial accounts, including:

    • Life insurance policies
    • Retirement plans: 401(k), IRA, 403(b), etc.
    • Investment & brokerage accounts
    • Pension funds

    Because beneficiary designations can override your will’s terms, regularly update each designation to prevent unintentional inheritance or legal disputes.

  3. Guardianship Designations | Who will care for your minor dependents?

    4. If you have minor children, designate a legal guardian who will care for them through adulthood if something happens to you. Without a designation, the court holds authority over guardianship, removing your control over your children’s future.

  4. Wills & Trusts | How will your physical assets be handled?

    5. The Last Will & Testament is the cornerstone of your estate plan, outlining how you want your assets distributed. This document applies to assets that lack or do not allow a beneficiary designation, including:

    • Personal property
    • Real estate
    • Foreign securities
    • Cryptocurrencies

    Trusts offer greater control over asset distribution, especially for substantial estates. Bequeathers can establish conditions for inheritance and manage tax implications more effectively.



Download Checklist

Benefits of a Well-Prepared Estate Plan

A clear estate plan accurately represents your intentions and offers key benefits such as:

  • Full Autonomy
    Since estate plan documents are legally binding, you retain authority on everything that matters most to you, preserving explicit control over what happens to your assets, who receives them, and when.
  • Efficiency
    Clear and concise estate plans streamline asset distribution, minimizing the administrative burden on your executor and preventing unnecessary delays or costly legal fees for your beneficiaries.
  • Privacy
    Leaving no room for interpretation or dispute, a well-prepared estate plan mitigates any risk that your last will & testament will require validation through probate court. Bypassing the judicial system keeps your matters private and out of the public record.
  • Peace of Mind
    Knowing your affairs are in proper order allows you to focus on enjoying life instead of worrying about how your financial and healthcare decisions might be mishandled.
  • Trustworthy Representation
    Appointing a POA guarantees seamless management of your affairs without leaving anything to chance. If you can’t be in the driver’s seat, it’s much better to trust a loved one to follow your directions and navigate on your behalf than to be at the mercy of the healthcare, judicial, and fiduciary systems.
 

In contrast, an incomplete or unclear estate plan can misrepresent your intentions and complicate or delay the process for your heirs during an already difficult time.

These negative consequences can include:

  • Family Conflict
    Without a clear legal document, family members may disagree about asset allocation or medical decisions, sometimes causing severe strain on relationships. Conveying your wishes to family members in advance and formalizing those wishes through an estate attorney reduces the likelihood of confusion, misguided entitlement, and emotional turmoil.
  • Legal Challenges & Fees
    Without a will, state law dictates how to distribute your property through probate court. This process generates considerable legal fees and administrative challenges for your family. Most concerning, the court’s decision may contradict your wishes and leave your family powerless to intervene on your behalf.

When Should I Start Developing an Estate Plan?

It is never too early to start estate planning, and every adult should have one, regardless of income or asset level, especially if minor children are involved. The sooner you start documenting your wishes, the easier it will be to refine your plan gradually as assets accumulate and life grows more complex.

Crucial milestones for estate planning include:

  • Legal Adulthood
    At age 18, no longer legally dependent on your parents, you should create a basic plan that designates a health care proxy and a financial power of attorney to make decisions and manage your affairs in the case of an emergency that leaves you incapacitated.
  • Parenthood
    A more thorough estate plan becomes critical as soon as you have children. At a minimum, adults with minor dependents should establish guardian and beneficiary designations to safeguard their children’s future if the worst happens.

How Often Should I Update My Estate Plan?

Estate planning documents require updates to keep up with personal circumstances and remain compliant with tax and estate law, which change frequently.

We recommend a careful review:

  • Every 3-5 Years
    A good rule of thumb is to review your plan at least every three to five years to adjust for regulatory and legal changes and document any changes in your family, asset portfolio, or vision for the future.
  • After Major Life Events
    Any substantial life event, such as a birth, death, or change in marital status, should prompt an immediate estate plan review. Other prompts might include:
    • Moving to a state with different estate or tax laws
    • Receiving a terminal health diagnosis
    • Acquiring real estate or any other significant asset

Key Participants in the Estate Planning Process

To realize the benefits of a well-prepared estate plan, best practice encourages proactive communication with your loved ones and professional guidance from estate experts who know how to minimize risks and navigate legal and regulatory complexities.


When developing an estate plan, partner with trusted experts & collaborators, including:

  • Powers of Attorney & Executor
    Before formalizing any responsibilities or designations, inform the individuals of your intentions and allow them to ask questions. Once they clearly understand your expectations, they can decide whether to perform the role as intended.
  • Beneficiaries
    Those who will someday inherit assets should be included in the process so that they can adequately prepare for the transfer. Even if you choose not to disclose explicit details or dollar amounts, most beneficiaries will benefit from an open dialogue about your expectations and guidance on managing inherited assets.
  • Estate Lawyer
    An attorney guides you through drafting wills, trusts, powers of attorney, and legal documents. He/she can also provide counsel on state-specific regulations and tax considerations.

    While more costly than online DIY forms, the value of accurate, compliant estate management counsel far exceeds the upfront expense
  • Tax Expert
    A tax professional is crucial to protecting the net amount of bequeathed assets and adequately addressing the nuances of tax law. Estate taxes, capital gains, and the embedded tax liability of retirement savings accounts can complicate many asset transfers.

    An experienced tax expert can advise on reducing tax liability for the next generation, minimizing estate or gift taxes, and maximizing deductions through a trust when applicable.
  • Financial Advisor
    Uniquely qualified to coordinate retirement accounts, fixed income strategies, and investment portfolios with your estate plan, a financial advisor is vital to ensure comprehensive alignment between your will and asset management.

    At Toberman, we begin the process with a level-setting conversation to identify your financial goals and long-term vision for your asset portfolio. Once the estate plan is drafted and signed, we monitor each asset, modeling forecasts and making recommendations based on the inheritance goals outlined in your most recent will.

What is the Relationship Between Estate Planning & Retirement Planning?

While retirement planning focuses on maximizing and supporting your quality of life through the golden years, estate planning focuses on how your resources will support your goals and serve your family once you pass on or lose the capacity to manage them yourself.

When properly managed, estate and retirement planning are two sides of the same coin. My conversations with clients about retirement decisions often address a desire to preserve assets to pass along to family, emphasizing the importance of resource allocation and spending strategies that align with both planning objectives.

Conclusion

Estate planning offers a comprehensive strategy for protecting yourself, your loved one, and the financial legacy you aim to leave behind. A well-prepared, regularly updated estate plan preserves your autonomy and privacy as life events unfold. It guarantees accuracy and efficiency in allocating your assets, granting you the peace of mind you deserve.

At Toberman Becker Wealth, we work closely with clients to align visions of retirement with visions of financial security for their loved ones ever after. Contact us today to start building a robust future for you and your family.

Toberman Becker Wealth is a fee-only, independent fiduciary firm based in St. Louis. Whether you start dreaming about retirement in your 50s or actively plan for retirement in your 60s, we help people nearing a transition build a resilient retirement plan. We always operate in the best interests of our clients, and our top priority is helping you live comfortably now without sacrificing your financial future later.

If you’re looking for an investment advisor to help you build a diversified retirement plan that ensures comfort and peace of mind, feel free to book a meeting or give us a call.

Michael is a highly knowledgeable and experienced partner at Toberman Becker in St. Louis. With his expertise in investment management, behavioral finance, and retirement planning, Michael is dedicated to providing his clients with the best financial guidance possible.

Having worked with clients on complex estate planning and developing investment strategies for a team of advisors, Michael’s experience spans across various areas of financial planning. What truly sets him apart is his unyielding desire to acquire knowledge for the betterment of his clients. At Toberman Becker, this commitment to continuous learning is the foundation upon which exceptional client experiences are built.

Michael earned a Bachelor of Science degree in Finance and Banking from the University of Missouri – Columbia. Additionally, he holds designations as a Chartered Financial Analyst (CFA) charterholder and Certified Financial Planner (CFP).

Beyond his professional achievements, Michael enjoys a fulfilling personal life in St. Louis. Living with his wife, Lindsey, and their beloved dog, Birk, he finds joy in activities such as golfing together and exploring local restaurants.