Estate planning is really more about making decisions and being organized than anything else. Once you have done the process, the decision needs to be made and once it is decided, getting the necessary plans and materials becomes a simple process. Here are some things to watch out for and a list of items to consider.
Create and execute wills: A will is simply a clue left by you on how, when and where you want your assets to be transferred after your death. Your call also includes specific instructions regarding your “personal” goals. It can also leave instructions for small children and naming guardians.
Revocable living trust: It may make sense to consider using a trust if you own real estate or other assets that require a new title or deed. Trusts can help avoid the need for probate and can often reduce costs.
Health care directions: This directive will allow your heirs and caregivers to fully understand your wishes with respect to assets and end-of-life care. The term “desire to live” is often used as a health care guide as is “power of attorney”. A general “power of attorney” often allows a trusted person to lead and maintain your financial wealth.
Assets that evade probate: Anything that can be called a beneficiary can avoid probate. This can include bank accounts, stockbrokerage accounts, life insurance, annuities and retirement accounts such as IRAs.
Calculate property taxes and probate fees. Many estates will be liable for estate taxes (death tax) and this may result in the need to liquidate assets to meet liabilities. Make sure you fully understand this potential liability. Often life insurance is used to provide liquidity to solve problems.
Funeral Fee: Many people prepay property taxes and leave specific instructions for final service. These instructions are often handwritten and a great place to store them is at your discretion. It’s a good idea to notify your child or a close friend of their whereabouts.
Safe storage: Your health certificate and power of attorney must be kept safe. A trusted friend or child should know their location. Other items that should be kept safe can include deed, brokerage account information, IRA information, funeral plans, general financial information, and tax returns.