It’s About Clarity, Not Just Cash

Estate planning starts with something simple: making sure someone knows what you have and where you keep it. Through our interactions with members, we’ve heard firsthand how grieving families often struggle to track down a loved one’s accounts, unsure of which financial institutions they used or whether anything is left behind.

Estate planning solves that problem. At its core, it’s a set of instructions—who gets what, who makes decisions on your behalf, and how you want to be remembered. It’s about protecting your loved ones from unnecessary stress and giving them clear guidance in a time of uncertainty.

Will vs. Trust. What’s the Difference?

One of the biggest sources of confusion is the difference between a will and a trust. Both are valuable tools, and both have their place depending on your needs. A will lays out your wishes after death, i.e. who should inherit your assets, who should care for your children, and who should handle your estate (the executor). However, wills often go through probate, a court process that can be time-consuming and costly.

A trust, on the other hand, can help bypass probate by placing your assets in a legal entity that you control while alive. When you pass away, a named successor takes over. This can streamline the transfer of assets, particularly for those who want to avoid delays and legal fees.

As Director of Wellbeing Grant Gallagher and Vice President of Retail Branching Shawn Lubitz pointed out in a recent Wellbeing and Your Wallet podcast¹ episode on this topic, neither option is inherently better. It’s about your situation and what you’re comfortable with.

What’s Involved in Planning

One common misconception is that estate planning only matters after you’ve passed. But it’s just as important for planning ahead in case of serious illness or incapacity. Powers of attorney, legal documents that allow someone else to make financial or healthcare decisions for you, are a key part of the process.

It’s also a mistake to assume you can “set it and forget it.” Life events like marriage, divorce, the birth of a child, or even a change in assets should trigger an update. Mismatches between a will and beneficiary designations, like a 401(k) naming an ex-spouse, can create costly conflicts.

And don’t forget digital assets, such as non-refundable tokens (NFTs), passwords and sentimental emails. If it matters to you, include it in your plan.

Start Small, Think Big

Estate planning doesn’t need to be overwhelming or expensive. Gone are the days of spending entire weekends at a law office. Today, digital tools make it easier and more affordable to get started.

As a member of Affinity, you have access to our partnership with Legal Karma². It offers a simple, guided way to create essential estate planning documents online. Whether you’re just getting started or want to revisit an old plan, this platform can walk you through the process at your own pace, with support if you need it.

Estate planning shouldn’t happen in a vacuum. Talk to the people involved, including those named in your documents or set to inherit meaningful assets. No one wants to learn at the worst possible time that they’ve been named power of attorney or executor. Clear communication avoids confusion and ensures everyone knows your wishes ahead of time. When you’re ready to take the next step, learn more and access Affinity’s estate planning portal³.

This information is for informational purposes only, is intended to provide general guidance, and does not constitute legal, tax, or financial advice. Each person's circumstances differ and may not apply to the specific information provided. You should seek the advice of a financial professional, tax consultant, and legal counsel to discuss your particular needs before making any financial or other commitments regarding the matters related to your condition.

¹ Retrieved from: https://wellbeing-and-your-wallet.captivate.fm/episode/protect-your-money-and-family-with-estate-planning

² Retrieved from: https://estateplanning.affinityfcu.com/

² Retrieved from: https://estateplanning.affinityfcu.com/