Always be careful about using someone else’s experience as a cautionary tale, but the story of Chadwick Boseman’s estate illustrates a sad point. The actor was world famous after starring in Black Panther when he died of colon cancer at age 43.

Unfortunately, he did not leave a proper estate plan, leaving his wife to handle funeral expenses, legal fees, and taxes while also getting into a dispute with Boseman’s parents over his estate. An estate plan would have saved her additional stress at a heartbreaking time and ensured that Boseman’s wishes were honored.

Now is the time to plan

For some, estate planning may be an imminent need. For many of us, it sounds like a concern for the future. However, no matter your stage in life, there are countless examples from many walks of life that illustrate that it’s best to plan now.

In a properly constructed estate plan, the goal is to pass on your assets to your heirs according to your wishes while minimizing taxes and costs as much as possible. The process should be undertaken with expert investment, trust, and legal guidance. Here are some key terms and concepts to get you started:

Inventory: To start creating your estate plan, it is important to have an accurate account of all your assets. Things like your house, car, investments, bank accounts, jewelry, clothes, and other items are all the building blocks of your estate plan. The inventory helps identify items that may require special handling such as business interest, art collections and illiquid assets.

Will: An account of your assets is the first step in ensuring that they are properly distributed to your heirs. One of the more commonly known tools for designating how assets are transferred is a will. It is the document that specifies, for example, that your nephew gets your guitar collection and your cousin gets your grandmother’s necklace.

If an individual dies without a will, they are considered to have died intestate, which complicates the legal process for the distribution of assets and may not reflect the wishes of the deceased.

Probate: Many assume that if they have a will, their assets will be easily distributed to their heirs. They may be surprised to learn that the assets must go through probate, which is a court process for determining the distribution of an estate. Probate can be a long and costly process. Depending on the complexity of your estate, the process can take anywhere from 4 to 12 months. It can be frustrating, delay your heirs’ ability to take possession or sell assets, and can reduce the value of the estate due to fees.

How to avoid probate: Beneficiaries and trusts

Fortunately, there are many simple ways to avoid or reduce probate. One is by naming a beneficiary on your accounts. A beneficiary names the person you intend to receive your account upon death. Depending on the state you live in, this could be what’s called “transfer on death” (TOD) or “payable on death” (POD). These designations can be added to your bank, investment, and retirement accounts.

Additionally, how you title these accounts can also be used to avoid probate. If you own assets jointly held with a spouse, you can ensure that the asset contains a survivorship feature which guarantees that the asset is passed to your spouse upon death.

Another way to avoid probate is to set up a revocable living trust. This refers to a trust that can be changed or altered during life and is the easiest to set up through a licensed attorney. It is also a very flexible document with many provisions that can be set up to detail your wishes.

If you set up a trust, you are deemed the trustor (or grantor depending on your state of residence, but they mean the same thing). Typically, the person who is the trustor is also the trustee (the person who has authority over the trust and its assets), but it can be another designated person. The trustee has a fiduciary duty to fulfill their role in accordance with the trust.

The last component of the trust are the beneficiaries, or those who inherit assets from the trust. A trust may seem like a fancy will and therefore would negate the need for a will since having one or not does not avoid probate. However, you should still have a will. The main reason for this is that if the trust has not accurately accounted for all assets, the will can act as a backup document to the trust.

In addition to documents that can assist in transferring your assets, you will also want to consider adding these additional documents to your estate plan:

• Guardianship: Designates a trusted person to care for your children or dependents when you are no longer able to care for them.

• Durable power of attorney: If you become incapacitated or unable to handle your own affairs, you can give legal rights to a person to act in these matters on your behalf.

• Healthcare directive: Sometimes referred to as a living will, directs medical professionals to act in a way that is consistent with your wishes should you become incapacitated. This document can also apply to situations like life support.

We’ve all heard the saying that the only things that are certain are death and taxes. Healthy habits can delay the first and estate planning can help minimize the second.