• Estate Management Checklist

  • Effective Estate Planning requires attention to a number of important details. The following checklist will get you started developing an estate management plan.

    Consult with your professional adviser after reviewing the following questions.

    1. Do you have a will? A will enables you to specify who you want to inherit your property and other assets. A will also enables you to name a guardian for your minor children.
    2. Do you have healthcare documents in place? Healthcare documents spell out your wishes for health care if you become unable to make medical decisions for yourself. They also authorize a person to make decisions on your behalf if that should prove necessary. These documents may include a living will, a power of attorney agreement, and a durable power of attorney agreement for healthcare.
    3. Do you have financial documents in place? Certain financial documents can outline your financial wishes. If you become unable to make decisions for yourself, these financial documents can be structured to empower a person to make decisions on your behalf. These documents may include joint ownership, durable power of attorney, and living trusts.
    4. Have you filed beneficiary forms? In some cases, naming a beneficiary for bank accounts and retirement plans makes these accounts "payable on death" to your beneficiaries. In other cases, you will need to fill out a "Payable on Death" form.
    5. Do you have the right amount and type of life insurance? When was the last time you assessed your life insurance coverage? Have you compared the life insurance benefit with your financial obligations?
    6. Have you taken steps to manage your federal estate tax? If you have more than $11.7 million in assets ($23.4 million for a married couple), you may want to consider taking steps to manage federal estate tax which will be due at the second spouse's death.
    7. Have You Taken Steps to Protect Your Business? Do you have a succession plan? If you own a business with others, you may also want to consider a buyout agreement.
    8. Have You Created a Letter of Instruction? A letter of instruction is a non-legal document that outlines your wishes. A strong, well-written letter may save your heirs time, effort, and expense as they administer your estate.
    9. Will Your Heirs Be Able to Locate Your Critical Documents? Your heirs will need access to the specific documents you have created to manage your estate. These documents may include:
      • Your will;
      • Trust documents;
      • Life insurance policies;
      • Deeds to any real estate, and certificates for stocks, bonds and annuities;
      • Information on your bank accounts, mutual funds, and safe deposit boxes
      • Information on your retirement plans, 401(k) accounts, or IRAs; and
      • Information on any debts you have: credit cards, mortgages and loans, utilities, and unpaid taxes.

    Note: Power of attorney laws can vary from state to state. An estate strategy that includes trusts may involve a complex web of tax rules and regulations. Consider working with a knowledgeable estate management professional before implementing such strategies.

  • The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.