National Estate Planning Awareness Week

What the day is

National Estate Planning Awareness Week is observed during the third full week of October, running Monday through Sunday. It encourages people to plan ahead for what happens to their property, their finances and their medical care if they die or become unable to decide for themselves. Lawyers, advisers and nonprofit groups mark it with seminars and free guides.

The name can mislead. An estate is simply everything a person owns, and planning for it matters to people of ordinary means, not only the wealthy.

Origin and background

The week was created through the National Association of Estate Planners and Councils, a professional group of estate planning attorneys, accountants, trust officers and financial advisers. In 2008 the U.S. House of Representatives adopted a resolution, H. Res. 1499, backed by Representative Mike Thompson of California and dozens of other members, naming the observance and encouraging professionals to share estate planning information with the public.

The need it points to is well documented. Surveys regularly find that fewer than half of American adults have a will. Without one, state law decides who inherits, which may not match what a person would have wanted, and the process can be slower and more expensive for the family.

A complete plan usually has several parts. A will names who receives property and who cares for minor children. A durable power of attorney lets someone manage money if the owner cannot. A health care directive and a health care proxy state medical wishes and name a decision maker. Beneficiary designations on retirement accounts and life insurance override a will, so they need to stay current. Some people add a trust to avoid probate or manage assets over time.

Most estates fall below the federal estate tax threshold, which is in the millions of dollars per person, although some states have their own estate or inheritance taxes at lower levels. Laws differ from state to state, and this page is general information, not legal advice.

How to take part

• List what you own and owe, including accounts, property, insurance policies and online accounts.
• Check the beneficiaries on your retirement accounts and life insurance, and update them after a marriage, divorce, birth or death.
• If you have no will, ask your state bar association for a referral to an estate planning attorney, or look for a free community seminar this week.
• Tell your executor and family where the documents are kept, and store the originals safely.
• Review the plan every few years and after any major life change.