Plan Your Legacy: Three Estate Planning Questions You Can’t Ignore

BLOGS|16 Dec 2024

A former colleague of mine used to say that when you pass away, […]

A former colleague of mine used to say that when you pass away, the only thing you take with you is the clothes you’re buried in. Everything else you own needs a plan. That statement would always lead to a conversation around what he called the Three Questions. 
  1. What do you own? 
  2. How do you own it? 
  3. After you’re gone, what do you want to happen to it?
Let’s break those estate planning questions down, one by one.

What Do You Own? 

Most people have a general idea of what they own. The issue often lies in gathering all that information in one place. This step becomes critical if someone else—a non-involved spouse, power of attorney, executor, or child—needs access to it. At BentOak Capital, we understand how important this step is. That’s why we created our Guide to Legacy Planning. There are also many “life organizers” available as books or digital tools. A simple written or typed document on your computer or in a secure location like a safe can work just as well.  Be sure to include not only your financial accounts but also login credentials for email and social media accounts. For security, passwords are best managed through an online tool like LastPass or a similar service.

How Do You Own It?

Legally, there are two types of property: real and personal. How you own these assets is a cornerstone of estate planning. In Texas, most of the time we deal with three forms of ownership: community property, joint tenancy, and sole ownership. Each has implications for what you can do with the asset while you’re alive, how it’s included in your estate at death, and how it can be transferred after you’re gone. Personal property, such as furniture, jewelry, antiques, and family heirlooms, often sparks the most family disputes. There’s usually only one of mom’s favorite necklaces or grandpa’s pocket knife, and determining who gets what can create tension if plans aren’t clear. Taking the time to consider how you own these assets is essential for answering these estate planning questions.

After You’re Gone, What Do You Want to Happen to It? 

The importance of an intentional estate plan can’t be overstated. If you don’t have a will, Texas (or your state of residence) has intestacy laws that decide how your assets will be distributed. Without a plan, you’re leaving critical decisions—like the distribution of your possessions or the guardianship of minor children—to state government and the court system. If that’s your fallback, we recommend familiarizing yourself with those laws. There are only three destinations for your estate: 
  1. The government, often in the form of estate taxes
  2. Your family or other heirs
  3. Charity
I’d like to think everyone wants to minimize the amount going to the government. Thanks to tax law changes in the late 2010s, estate tax thresholds are currently very high—over $13,000,000 per person. However, without intervention by Congress through the Tax Cuts and Jobs Act, this threshold will be reduced to approximately $7,000,000 in January 2026.  Taxes aside, estate planning is about more than minimizing the government’s share. It’s about taking control of where your assets go. Want to ensure specific family members inherit certain items? You can specify that in your will. Want to leave a legacy for your church, alma mater, or favorite charity? You can make that happen, too. It’s worth noting that some assets can’t pass through a will and instead transfer outside the probate system: 
  1. Retirement accounts like 401(k)s or IRAs (via beneficiary designation) 
  2. Life insurance proceeds (via beneficiary designation) 
  3. Bank or investment accounts with POD (payable on death) or TOD (transfer on death) designations 
  4. Assets held in trust (as specified in the trust document) 
  5. Business interests governed by a buy/sell agreement or partnership terms

Why These Estate Planning Questions Matter 

Answering these three estate planning questions is crucial to creating a clear and intentional legacy. So, how are you doing with that? If you have questions about your specific situation, we’re here to help. Contact us today to start planning for your future—and your legacy.   
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. 

Please remember to contact BentOak Capital (“BentOak”), in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you want to impose, add, to modify any reasonable restrictions to our investment advisory services, or if you wish to direct that BentOak to effect any specific transactions for your account. A copy of our current written disclosure Brochure discussing our advisory services and fees continues to remain available upon request or at www.bentoakcapital.com. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. Securities offered through LPL Financial, Member: FINRA/SIPC. Investment advice offered through BentOak Capital, a registered investment advisor and separate entity from LPL Financial.

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