By Cynthia Flash, Special to The Medium
Debra Smiley in July became the first Black woman to be elected president of the Estate Planning Council of Seattle, an organization dedicated, in part, to educating the public on the importance of estate planning.
She’s well prepared for the leadership role through her work as director, client services, at Laird Norton Wealth Management in Seattle, where she helps clients create and administer trusts.
“You’re the counselor, financial advisor, therapist, negotiator, liaison in between the parent and the child sometimes. It’s an interesting role. Not for the faint of heart,” said Smiley, who is a classically trained opera singer whose natural ability with numbers ultimately landed her a job working in accounting and later led her to advise clients on creating and executing intricate trust documents that outline how they want their wealth to be distributed. “I enjoy it. I try to pass on my experiences in life, as a woman, as a mother. It’s a lot of responsibilities and roles you’re trying to deal with at the same time.”
A big believer in sharing her knowledge to help others, Smiley hopes that as president of the Estate Planning Council of Seattle she can create awareness among African Americans about how to build multigenerational wealth.
Everyone – regardless of their net worth – needs an estate plan. It’s more than passing along assets. It’s about properly planning for end of life, making one’s personal wishes known, and doing as much planning in advance to avoid potential family conflicts.
Estate planning is a vital step toward securing one’s financial future and safeguarding the well-being of loved ones. For many African Americans, a history of financial exploitation and mistrust has led to reluctance in engaging with financial institutions. However, by taking control of your estate planning, it’s possible to protect assets, ensure wishes are honored, and foster family unity.
Smiley, in a recent interview, offered the following advice to get started:
1.Acknowledge the past to empower the future. It’s no secret that African Americans have been taken advantage of historically in the financial world – in real estate and banking. As a result, there is a lot of mistrust. We often don’t have advisors to go to who look like us. This distrust has prevented many from seeking expert advice and guidance. However, acknowledging this history is essential to breaking the cycle of financial disadvantage. By embracing estate planning, you can reclaim control over your assets and ensure a prosperous legacy.
2. Start early and have open conversations. Start talking now about what you want to do and what you have. Talk about where things are. Who will take care of a minor child or a special needs child or an elderply parent if you aren’t around? People die and it’s an emotional situation for everyone involved.
3. Preserve family harmony. Anticipate potential conflicts over personal belongings. Talk specifics – because sometimes the smallest things cause the biggest conflicts. What will happen to the necklace grandma brought up from Mississippi? Or the lamp at grandmother’s house, or that blanket you snuggled under as a kid? These things perpetuate and go on after the person is gone. Don’t fight about a necklace or a chair or the piano. Have conversations about dying. Write down who gets what. The earlier you start these conversations, the smoother the planning process will be.
4. Prioritize documentation and organization. Gather and organize important documents, such as insurance policies, deeds, and financial account information. Ensure beneficiary designations are up-to-date, especially after significant life events like marriage or divorce. Keep this information accessible to trusted family members or advisors.
5. Create appropriate legal documents. Execute a will and/or trust to outline your wishes for asset distribution and guardianship of dependents. If you don’t have a will, the state of Washington will determine what happens to your assets and your minor children.
6. Appoint trusted representatives. Who makes the decision if you or a loved one has to be removed off of life support? Who has access to personal health information at the doctor’s office? Designate individuals to manage your affairs in case you become incapacitated. A Durable Power of Attorney (POA) grants someone the authority to manage your finances; a Durable Power of Attorney for Healthcare grants someone the authority to have access to healthcare information and make descisions should you lose capacity; and a Healthcare Directive/Living Will outlines the medical treatment you would need to sustain your life. Choose these individuals thoughtfully. They should understand your values and be capable of making informed decisions when the time requires.
7. Seek professional guidance. Yes, cost and trust are often times hurdles for seeking professional help. Although online resources can provide initial guidance, sometimes the cheapest way isn’t the best way. You don’t want to save money up front in exchange for paying more to clean up a mess after your loved one is gone. To save time and money, have a conversation at home first about your wishes and desires, then consult professionals, such as an attorney and financial advisor. Look for reputable firms that offer pro bono services or discounted rates, such as those recommended by our local bar association. Qualified professionals will make sure your estate plan aligns with legal and financial regulations, avoiding costly mistakes.
8. Account for unique circumstances. If you have property or assets in a different state, consider state-specific tax laws and regulations. Washington state, for example, has an estate tax, which must be planned for.
9. Update and review regularly. Life is dynamic, and your estate plan should reflect changes in your circumstances. Review your plan periodically to ensure it aligns with your current goals and situation.
10. Embrace legacy and empowerment. Estate planning is about creating a legacy that honors your values and empowers future generations. By taking control of your financial future, you can break the cycle of mistrust and build a strong financial foundation for your loved ones.
Estate planning is a powerful tool that can empower you to overcome historical financial disparities and secure your financial legacy. Through open conversations, careful documentation, with the help of qualified professionals, you can ensure your assets are protected and your wishes are honored. You’ll not only create financial security but can also leave a legacy for future generations.
Additional estate planning resources can be found at www.epcseattle.org
