What Is Estate Planning?
Estate planning is a life-long process in which you evaluate your current situation and plan for the future. It includes planning for your retirement, for the possibility of disability, and for death. The estate planning process requires that you consider a wide range of legal, financial, emotional and logistical issues. Estate planning can be a positive experience since it involves reviewing your current situation and planning for your future. Although most people find it unpleasant to think about the possibility of disability or death, advanced planning is also a way to show your love and to reduce potential distress later. Because every person’s situation is unique, there is no single “checklist” to follow for estate planning. Proper estate planning also includes financial planning. Financial planners, accountants and insurance agents can help you identify other estate planning issues that an attorney may not be able to specifically address.
What should your family know?
It is important to periodically review your records, and decide whether you need to prepare a summary of your property and debts, so that others can effectively administer your estate if you are disabled, or when you die. If you are disabled before you die, your family must know about your debts and insurance, so they can make payments as they become due. Recent loan applications and tax returns often provide a good starting point to identify your assets, but these won’t include some important property. Will your family know the following? Location of vital documents (assets, debts, marriage, divorce, adoption) Location of employment records (and military records, if applicable) List of real estate owned (including partnership/joint ownership) Location of deeds, loan documents Payment information for mortgages, taxes, insurance Name of person most knowledgeable about property List of valuable personal property - Make sure your family knows if any of your furniture, art work or any of your other personal property items have a special value (emotional or financial); consider the possibility that a family members who already know about these things may not out live you. Information regarding employee disability and survival benefits Information regarding pension/retirement benefits, IRA’s, 401K, social security, etc. List of banks, investments, security accounts Children’s savings accounts (including trust and custodianship accounts) Investments accounts (broker, mutual funds) Names of advisors (accountants, attorney, insurance agent) Burial/funeral plans, pre-arrangements Motor vehicles (description, location of vehicle, location of title, loan and insurance information) Safe deposit box; storage lockers, safe, lock box (location, who has key and access rights? Detailed list of contents) Insurance information (location of policies and related documents); life insurance company, policy number, amount, disability insurance, health insurance, including medicare, medicaid, long term insurance care (whether the premium due dates and amounts for each policy) Loans, promissory notes (debts you owe, debts others owe you, payment terms, amounts, due dates, location of documents, state your intent regarding forgiveness of debts or plan to offset from future inheritance.
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