Whether you already have wills, trusts and other estate planning documents in place or need to have them created, there are a number of priorities to consider as you move forward with the legacy planning process.

Here are six steps that may be appropriate for you to complete as you consider the ongoing management and ultimate disposition of your wealth:

1. Take time to carefully determine what exactly you want to have happen.
Thinking about the future of your money, particularly about that period when you may no longer be in the picture, isn’t easy to do. But before you make specific decisions about what’s best for your wealth, it is wise to spend significant time considering what it is you really want to see happen with it. Talk to advisors and peers to learn what your options may be and assess the strategies that appear to make the most sense for you. While you may read articles or receive advice about how to protect your estate from the impact of taxes, remember that tax avoidance is not the only objective of your legacy strategy, and may be less important than other objectives.

2. Make sure family members are prepared for what’s ahead.
Depending on your circumstances, a child or grandchild may stand to receive a significant sum through gifts, trusts or an inheritance. No matter how much you respect the judgment of a beneficiary or trust his or her ability to handle finances, the fact is that money can change people. What you can do in advance is talk to those who will be on the receiving end when your wealth begins to be distributed. Explain your values about money to them and seek assurances that they too will live by those values. You can even spell out your wishes in any legal documents created for your estate. It doesn’t assure that everything will turn out as you hoped, but taking the time to help beneficiaries prepare for what’s ahead may create the best opportunity for a positive outcome.

3. Protect family members who will share assets.
In situations where beneficiaries will need to share in the management of a particular asset, such as a business or real estate, it is important to consider potential conflicts that could develop long after you are gone. For example, what happens if one of the beneficiaries wants to sell his or her ownership stake in the future? Rather than let other beneficiaries dictate the terms of any sale, you can specify terms of how a sale can occur to assure that it is fair to all parties while not putting the entity at risk. Providing this level of guidance in advance is a way to foster long-term family harmony and avoid potential legal entanglements between beneficiaries.

4. Provide specific instructions, but use consistent language.
Consider the needs and capabilities of each beneficiary when determining how your attorney drafts language in any documents related to the disposition of your assets. At the same time, try to incorporate guiding principles that provide some consistency to help clarify your intentions if questions should arise in the future. Trusts can be drafted to include terms that are specific to each beneficiary, but also keep in mind the importance of having guidelines in place that will make clear to the trustee your key objectives. This can help provide some direction to the trustee without hampering his or her ability to react to changing circumstances. Providing clear guidelines can help the trustee make decisions that account for the realities that may exist in the future, but are generally aligned with your ultimate intentions.

5. Carefully assess your charitable intentions.
Many organizations seeking donations emphasize their tax-deductible nature. But remember even though there are tax benefits, charitable giving still means a financial sacrifice on your part. Because of the tax benefits, there can be strategic financial reasons for making charitable gifts. But above all else, the purpose of these contributions should be to fulfill your charitable intentions, not to generate tax savings. Keep in mind that depending on your income, the amount of the contribution that you are able to deduct on your tax return may be limited.

6. Consider your options with existing trusts.
You may already have trust documents in place. If you feel some of the issues discussed in these steps are not appropriately addressed in your existing estate planning documents, you can consider having your attorney re-draft them as needed.

If any of the trusts you already created are considered "irrevocable trusts," it does not necessarily mean that changes are out of the question. Some states permit modifications to an existing trust, either with or without court supervision (depending on the state). Alternatively, certain states now have "decanting" laws that allow for the creation of a new trust without going to court. The new trust can contain updated terms that may better reflect your desires. Assets of the old trust are "poured" into the new trust that will now govern the disposition of assets. If you live in a state that does not allow this level of flexibility, another option is to actually consider moving the trust to another state to accomplish the desired changes.

Finally, and perhaps most importantly, remain focused on what may be effective ways to distribute your wealth in line with the ultimate goals you have for your estate.

Important Disclosures

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The information provided represents the opinion of U.S. Bank and is not intended to be a forecast of future events, a guarantee of future results. This information is not intended to serve as a recommendation or solicitation for the purchase or sale of any particular product or service. It does not constitute advice and is issued without regard to any particular objective or the financial situation of any particular individual. U.S. Bank and its representatives do not provide tax or legal advice. Each individual’s tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation.