Failure to have a POA in place (which means it has to be validly signed, and recent enough that financial entities will accept it) means your family may have to go through what’s called “living probate”.  In that instance, a Court will appoint someone to handle your financial affairs, but the Court will retain oversight.

There are positives in that, as the Court will theoretically prevent anyone from taking advantage of you or using your money for their own purposes, but also negatives, in that the reporting your agent will do will be a public record and you will lose the privacy many New Englander’s crave.

We always recommend that you have your Attorney or other trusted professional your original power of attorney to minimize the chance of it being misused.   

If you want to discuss in more detail whether a POA is right for you, contact us today.

The post Should I Have a Power of Attorney? appeared first on Hartford CT Estate Planning Lawyers.

A Trust will be effective as soon as it’s signed, so it may include provisions about your care, the care of your dependents, and how your money and property should be handled in the event of your death or disability.  

On the other hand, a Will only takes effect on your death so the terms will focus on naming someone to wind up your affairs (i.e., gather your belongings for safekeeping, create a list of everything you own, pay your outstanding bills and taxes, and give the remainder to the individuals and charities you have chosen). Because a Will takes effect only at your death, using a will to outline your wishes will likely still require your loved ones to go through the probate process (a court process that can be expensive, time-consuming, and public) to carry them out.

There are many types of trusts, but the most common is the Revocable Living Trust which is an entity that you will use to own your accounts and property during your lifetime by re-titling them in the name of your trust (if they are currently in your sole name) or making the trust the beneficiary if appropriate.  In the beginning, you will probably serve as the Trustee of your own trust, which means you still control how your assets are used.   If you become incapacitated, or you die, someone you have chosen ahead of time will step in as Trustee and continue managing the trust as you have directed, without court involvement. Because the trust is generally the owner or beneficiary of your assets, for probate purposes, you will essentially die without owning anything. Without assets in your sole name, there is nothing to probate and you can avoid that process.

Want more information? Contact us now!

The post What’s the difference between a Will and a Trust? appeared first on Hartford CT Estate Planning Lawyers.

• Do you have an estate plan in place?
• Have you looked at it in the last 5 years to make sure it’s up-to-date?
• Have you named a guardian for your children?
• Have you checked that the beneficiaries on your insurance, retirement accounts, etc., are current?
• Do you have a financial Power of Attorney so someone can manage your financial affairs if you cannot?
• Do you have a healthcare Power of Attorney so someone can make healthcare decisions for you if you cannot?

We know that preparing for international travel has a lot of moving parts. We want to offer our assistance to ensure that you are properly protecting yourself and those you love during your amazing journey. Give us a call or send a message to schedule an appointment now before you go!

The post Important Issues to Address Before You Leave on Vacation appeared first on Hartford CT Estate Planning Lawyers.

Estate Planning Basics

Estate Planning is the act of planning out who will receive your assets when you pass away. It is about making a plan in advance, choosing the people you want to receive your assets and doing all that through a will or trust. When we talk about an estate in the context of Estate Planning or Probate we are referring to all your assets, property, bank accounts, cars, and anything you own. 

An estate plan is not just for the purpose of passing on your assets to your loved ones, but it also can include several other indications. A good estate plan will often also include guardianship instructions regarding your children, provide funds for special needs family members, provide transfer of business instructions, power of attorney designations, and any final wishes. Estate plans can come in many forms, the two most common forms of estate plans are will and trusts. Wills and trusts are very similar in most regards and are the most common documents used in estate planning. But there are several other kinds of documents that might be used in estate planning from Power of Attorneys, to Advanced Health Care Directives, to Special Needs Trusts.

Who is Estate Planning For?

Estate planning is often associated with something you do alongside retirement planning or only if you are super wealthy. But this is far from being true. Estate planning is about being prepared and taking care of your loved ones. It’s not about your age or your income level, anyone can start an estate plan. 

People often put off estate planning because they feel like they can worry about it later or just because it seems too complex. This makes sense but is a grave mistake. Everyone needs to be prepared if something might happen, even if you are healthy. You have people that you want to take care of, and the fact that they might not get part of your estate if you don’t have a will in place is the main reason most people should have an estate plan. 

Planning ahead of time also helps with dealing with probate when the time comes. The probate process can be quite lengthy and stressful for your family, having a solid trust in place can dramatically improve and alleviate the time and complexity of the probate process. And not having a will or trust in place at all can significantly add to the burden of probate. This is because without a will or trust the estate is labeled intestate and the probate judge will end up deciding who the executor and beneficiaries will be. What the court might decide might be very different than what a person would decide for themselves, that’s why so many people opt to write their own will and make sure the court avoids these tough decisions. If you would like to learn more about the probate process, check out our comprehensive guide.

How Do You Start An Estate Plan?

Starting an estate plan can seem complicated, many people don’t know where to start. There’s many ways of going about it. The most sure way of starting is talking to an expert. There’s just a lot of complexity in certain plans, and when you go at it alone you run the risk of not doing it properly. Since these are legal documents you want to make sure that things are done properly and the documents are valid. 

An estate planning attorney can really help in laying out everything you need. A proper estate planning attorney will make an effort to really understand your family, your goals, and your finances. This is important because what works for one person is not going to be the best option for another person, a proper estate plan is tailor made for you. Some people might be better suited for a will, others might need a more complicated trust based plan. 

If you want more information regarding estate planning, we would be happy to help you! Visit our website for extensive information about the topic, or contact us today to talk to an estate planning attorney at (860) 232-1920

The post What Is Estate Planning? appeared first on Hartford CT Estate Planning Lawyers.

Millionaire, tech entrepreneur, and philanthropist Tony Hseih of Zappos died without a will on November 27th 2020 at the age of 46. Tony was valued at almost $1 billion, most of which he acquired from being an early investor in Zappos. Which makes the fact that he died without a will even more shocking. It reminds us that everyone needs a will, no matter how much/little you have or how young/old you are. 

How Tony Hseih Started an Ecommerce Giant

Zappos was founded by Nick Swinmurn in San Francisco in 1999 after Nick couldn’t find the right shoes at the mall. Nick decided to start an internet company where you could shop for shoes online. Tony came in around 1999 and invested in the company with the money he gained from selling Link Exchange to microsoft for nearly $300 million.Tony soon took over as CEO in 2000.  

Zappos became a pioneer in ecommerce and became known for their world class customer service. While the company went through many rough patches throughout their history including running out of money several times and not making a profit until 2007, Tony consistently believed enough in the company that he kept Zappos afloat with his own money and he only paid himself a salary of $37,000 for several years. It was only until 2007 when his company started turning a profit. 

Tony’s hard work paid off in 2009 when Zappos was sold to Amazon for $1.2 billion. Zappos had been approached by Jeff Bezos prior in 2005, but was rejected. At first Tony was reluctant to give up Zappos in fear that amazon would hurt the company culture he worked so hard to nurture. But after negotiations, the two companies came to an agreement that Zappos would continue to operate independently and keep their company culture.

Tony’s Tragic Death and Decline

Tony stepped down and retired as CEO of Zappos in August of 2020. In the following months after retirement, Tony moved to Park City Utah and purchased $50 million worth of real estate and homes. Many saw this out of character for a man that lived in a trailer while being CEO of a multi-million dollar company. There were also reports he declined into drug abuse and self destructive behavior such as experimenting with oxygen deprivation and seeing how long he could survive not eating. 

This would continue until he passed away in a Connecticut house fire on November 27th under very strange circumstances. As expected the entire world was saddened to hear they had lost a man that had impacted so many people. 

Here is a statement his family released after the tragedy. 

“The Hsieh family is deeply grateful for the outpouring of love and respect shown in the wake of Tony’s passing. It is clear to the family that he had a profound impact on countless people all over the world. He was a forward thinker with a zeal for bringing joy to others, and bridged communities and people from all walks of life. He valued experiences and relationships over material wealth, and always choose kindness.

Tony was extremely accomplished in both his personal and professional lives, his parents are most proud of how he turned out as a human being. He had true compassion and an endless desire to elevate everyone around him. He would often refer to himself as the caboose, because everyone else came first.

The Hsieh family hopes to carry on Tony’s legacy by spreading the tenets he lived by – finding joy through meaningful life experience, inspiring and helping others, and most of all, delivering happiness.”

Why Everyone Needs a Will

Tony who was only 46 at the time, did not leave any sort of will or trust in his name. While death and other unexpected circumstances is something no 46 year old should be worrying about, it just shows how important it is to have a will in place. Tony is not alone as only around 44% of American adults have a will. But it just makes us stop and think when someone as rich and influential as Tony passes away unexpectedly and leaves a massive estate to deal with. Tony probably won’t be the last tragic case that this happens, but it could be a wakeup call for the rest of us to be more conscious about estate planning.    

We often don’t want to think about what happens to someone after they pass away, but the hard truth is that without a will, loved ones face the difficult job of managing all their assets. In Tony’s case, a Nevada judge appointed Tony’s father and brother as executors in his estate. This means they are in charge of sorting out his wealth and gathering bank statements, safe deposit boxes, and other financial documents. The normal probate court process can last up to 18 months, in Tony’s situation it will probably last much longer. 

Why You Should Avoid Intestacy

In an Intestate case like this, every state has their laws about how the estate is divided, but what the probate judge decides is often very different to how the person would choose to spread his wealth. This is why creating a will or trust is very important, it makes sure things are handled how you would want them to be. When it comes to intestacy, everything goes out the window, nothing is certain. Here is a graph at how intestacy usually breaks down. 

It doesn’t matter how much or how little you have. Estate Planning is not about you it’s about your loved ones. You want to leave peace of mind for those you love, so they don’t have to worry about it. 10 million or 40 thousand, at the end of the day your loved ones would still appreciate what you leave behind.

Tony Hseih’s Legacy

Tony wrote a book in 2010 titled, Delivering Happiness. Not many people know what was going on in Tony’s life in the final months, but he was a man that dedicated a lot of his life to making employees and customers happy and that is how he will forever be remembered. A true tech innovator that gave a lot back to the communities he served. While he didn’t leave will behind he has left a lot for us that have improved the world in general. Thank You Tony.

Start your estate plan, here. Check out Tony’s book, here.

The post Tony Hseih of Zappos: Died Without a Will appeared first on Hartford CT Estate Planning Lawyers.

Family Dynamics

Estate Planning with stepchildren can be quite tricky. There’s more variables and people to think about than in a typical estate plan. When setting up a usual estate plan, you usually want to include your spouse, children, parents, and any other descendants. But in a blended family it can get more complicated as you might want to include your spouse and exclude any ex-spouses, you will probably want to include your children in your plan but do you want to include stepchildren? At the end of the day you decide exactly who gets what but communicating that with your family members and disputes after you pass away can make things a bit messy. 

Family dynamics have significantly changed in the past few decades. Blended families are close to becoming the new normal. In 1960 only 13% of married adults were in a second marriage, that number today is 25%. Things have certainly changed in that time, and so have estate plans. Here is a quick guide and a few tips on how to go about estate planning with stepchildren.

Trust vs Will

A simple will probably won’t be enough to properly protect your assets after death. In a blended family situation a Trust is a much better alternative as it allows your inheritance to be distributed to exactly you specify in the time frame you specify. 

In a will, you usually set it up for all your assets to go to your spouse after death. From there your spouse will probably make sure all their assets go to their children. But remember in a blended family you might not want everything to go to your spouse’s children.

Tips For Estate Planning with a Blended Family

1. Communicate Clearly With Your Family

Communicating clearly with your family through the estate planning process is very important and especially important in blended family situations. You will probably want to avoid inheritance disputes after your passing, so it’s easier to make sure everything is clear from the start.

2. Revise Your Estate Plan Every 2-3 Years

Remember that your family will most likely change and evolve. Make sure you keep up to date on your plan and make any modifications if you seem fit. What might be true 2 years ago when you set up your plan, might not be true anymore and you may want to modify certain sections of your trust. 

3. Plan for Incapacitation

Remember that estate planning is not all about your assets and properties. You have to plan for what will happen if you become incapacitated, in other words you cannot make financial or health related decisions for yourself. 

To solve this, you need to set up a health care power of attorney. A health care POA will let you choose someone to make medical decisions for you if you become incapacitated. 

There’s many different types of POA that you might want to set up if you have stepchildren and are in a second marriage. Such as general power of attorney or a durable power of attorney. A general POA is granted power to take over several financial decisions but it the power stops once you become incapacitated, while a durable last through incapacitation. These are all good options to think about, just make sure you pick someone you really trust to be your agent. 

If you have any questions about your specific family situation and how to go about Estate Planning, feel free to contact us, we are always free to answer any questions. Thank You!

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If you’ve ever wondered, “what is a Power of Attorney,” or if you are in that stage of life where you are estate planning, then this article is for you. Knowing what a POA is, how to use it, and knowing the different types of POA’s is very important to a post retirement life.

A Power of Attorney is a legal document that gives another person the power to act on your behalf. The person that is responsible to act in your best interest is referred to as the “agent” or “attorney-in-fact,” and the person that they are acting on behalf of (you) is the “principal.” Things that could possibly fall under the responsibility of the agent are financial, medical, and property related affairs.

What Can an Agent Do?

What an agent can and cannot do all depends on which kind of POA they were appointed to. This determines the extent of their power and the circumstances of their power. But an overall look into what an agent is capable of doing is as below. 

• Make medical decisions
• Make financial decisions
• Open and close bank accounts
• Have access to your financial accounts
• Conducting financial transactions
• Buy/sell property
• Decide on guardianship

Why Would Someone Need a POA?

Power of Attorneys are typically appointed because someone might not be able to handle their own affairs. This could be due to illness, disability, or absence. A Power of Attorney could step in in any of these situations and handle financial or medical decisions for a person. 

Power of Attorneys are useful in many situations. You might want to appoint a POA to specifically make medical decisions in case you become incapacitated and are unable to take care of yourself. A POA could also be used if you are unavailable for a period of time and you want to give someone you trust the power to make financial decisions, buy/sell property, or make business decisions for you while you’re gone. Or you could appoint this person the same financial power just in the rare case you become incapacitated. 

As you can see, there are several reasons and situations that you might want to appoint a Power of Attorney. That is why there are several different types of POAs, each for their own specific situation. Helping everyone to consider this as a viable option in case of an unfortunate event or as a strategic financial maneuver.

Types of Power of Attorney

General Power of Attorney

A General Power of Attorney grants the agent authority to conduct a wide arrange of responsibilities on the principal’s behalf. From opening/closing bank accounts to conducting financial transactions to filing taxes to transferring trusts all on the principal’s behalf. A general POA is cancelled once the the POA is revoked or once the principal becomes incapacitated. 

Durable Power of Attorney

A Durable Power of Attorney is granted the same powers that a General, Special, Healthcare, or Springing POA, but is maintained after the principal is medically or mentally incapacitated. 

Special Power of Attorney 

A Special Power of Attorney grants power to an agent to a very limited range of authority and typically for a limited period of time. Tasks that the agent is able to carry out on behalf of the principal can range from certain financial transactions to buying/selling certain property.

Health Care Power of Attorney

A Health Care Power of Attorney is specifically to grant an agent power to make healthcare related decisions. This is for cases where the principal is undergoing surgery, under anesthetia, or incapacitated. 

A Springing Power of Attorney becomes effective and grants power to an agent if a certain event happens. This could be such as if the principal becomes incapacitated.

What are the Risks?

An agent is supposed to act in the principal’s best interest, but there is a risk in choosing the wrong person to act on your behalf. Under certain circumstances an agent could transfer, sell, or buy property/assets without your permission. This is because under Power of Attorney he has access to financial accounts and has the power to make transfers without direct permission. In many ways, granting POA to someone, is permission to give someone control over your financial assets and medical outcomes. 

There have been cases where an agent has abused their power and not acted in the principal’s best interest but in benefit of their own. That is why choosing someone you trust to be your agent is tremendously important. Being an agent and assigning a POA is not an easy task and lots of thought should be put into it by yourself and loved ones. There are risks involved and it’s important you know that. Yet it is a very important tool that can protect you and benefit you in many situations. 

We recommend contacting a legal professional to set up a POA if you are considering one. It is a vital part of Estate Planning and is often included in many Will/Trust plans, but you don’t necessarily need a Will or Trust set up if you want a Power of Attorney. Feel free to contact us if you are considering setting up a Power of Attorney, we would be happy to help you out.

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1. How are life insurance policies and estate plans related
2. What are the benefits of having life insurance in your estate plan
3. Which types of life insurance can be included in an estate plan
4. What is an Irrevocable life insurance trusts and who should consider one
5. How much life insurance should you include in your estate plan

1.How life insurance policies and estate plans work together

You might be wondering how life insurance and estate plans work together, and if you have life insurance do you really need to do estate planning, and if you have an estate plan why would you also need to have life insurance? These issues can be somewhat daunting, not only because they are several legal and financial factors to consider, but also because most of us would rather not think about our inevitable death. You might be surprised to learn, life insurance policies and estate plans can function together or separately from one another.

A person’s life insurance policy may impact how their estate is taxed, the fees the estate must pay upon their death and how the proceeds are used. If the life insurance policy is included in the estate plan, the funds are available to cover the debts, bills, and other financial obligations of the deceased. Commonly, a spouse is named as both the primary beneficiary of the insurance policy and the trustee of the family trust thereby ensuring that funds from the policy can be used in settling the estate. But this does not fit every family situation and there are other ways of including life insurance policies into an estate plan.

2. What are the benefits of having life insurance in your estate plan

Generally speaking, having an insurance policy or multiple policies in your estate plan yields several benefits. The presence of the insurance policy in your estate plan creates an immediate estate (pre-death) which helps avoid taxes; maximizes your total net worth which may be leverage you can use and the cash value of the policy could be a source of tax free money in case you needed to use it for your retirement.

3. What types of life insurance can be included into an estate plan

There are several types of life insurance that you can include in your estate plan: term, whole, guaranteed universal, second to die, indexed universal, etc. Some term policies are a good option because they have return of premium benefits so you will either get your money back at the end of the term or your beneficiary will get it upon your death. Whole life policies are perhaps a better option for some, as they do not have a fixed term and can build cash value, but they have higher premiums. Guaranteed Universal Life policies blend the two by offering a whole life policy with minimal cash value at a lower fixed premium. Second to die policies are popular with well-off married couples where the first to die spouse is not in need of the proceeds and the couple plan to endow their entire estate to their children or to a charity. Of course, there are other types as well and it’s quite common for attorneys to meet with financial advisors to discuss a mutual clients’ best options.

4.What is an ILIT and who should consider it

For example, you can set up an Irrevocable Life Insurance Trust, or ILIT which is often a better idea if your total assets will exceed the exemption amount (currently 11.58 million). An ILIT is created to own life insurance policies while the insured is alive and manage the proceeds to be paid out after one’s death. There are several benefits to creating an ILIT. Your ILIT can help to minimize your estate taxes because the life insurance policies held within are not part of the gross estate and hence not subject to estate taxation. And in some situations, ILITs can provide liquidity and you might want cash on hand to pay the estate taxes and other debts and expenses. ILITs can provide asset protection from the creditors of the grantor and/or beneficiary. Another benefit is that the ILIT can protect the benefits of a Trust beneficiary who is receiving government aid such as social security or Medicaid. There are many other benefits beyond those stated here. See this article from Investopedia to learn more or contact our office or your financial advisor.

5.How much life insurance do I need for my estate plan?

By now you may be thinking, what amount of life insurance should I buy. There is no real answer to this as there is one size fits all scenario. How much life insurance someone needs will depend on how their life played out and hence it will be vastly different from one person to another. There are several factors to consider that can help you determine the right amount for you, including:
First of all, you should consider all of the other money sources that your family will have access to after your death, like money in your bank accounts and cash on hand and then consider whether you would want them to cash in savings bonds, CDs, stocks, etc.
Do you own a business or are you a partner in business ownership and how much cash would be needed to buy out your business partner

Will you owe estate taxes and how will your beneficiaries want life insurance proceeds to help pay off estate taxes;

Do you own a home or multiple homes and have a mortgage and how much would be needed to pay off your mortgage;

Do you have young children and what would be needed to provide for their schooling, now and once they get to college;

Are you the primary bread winner in your household and how much money would be needed to replace your yearly income so that your spouse and children will be able to experience the same life style as they are accustomed to for the next 5-10 years.

Once you have considered these factors and have come up with a figure to reach toward and have subtracted any liquid funds you, how much money is left for you to provide? This is how you can estimate the right amount of life insurance to buy so that your family will not have to dip into a 401K, stock, or mutual fund portfolio, or sell real property in order to maintain their lifestyle.

If you have any questions about your situation don’t hesitate to contact us.

The post Estate Planning With Life Insurance appeared first on Hartford CT Estate Planning Lawyers.

There is usually a lot of confusion around what an Executor does, and what they receive. Many people think that the Executor is the person who will receive all the benefits and assets of an estate. But this is far from true. So, can the Executor of a Will take everything? Usually not, but it’s not uncommon for the Executor of a Will to also be a beneficiary, but usually they don’t receive everything. 

What is an Executor?

The Executor of an estate is somebody appointed by either the Will maker or by the court to manage the deceased person’s estate. This person is in charge of all assets and carrying out the wishes of the deceased person as written in their Will. This person must deal with all 3rd parties, including beneficiaries, accountants, and most importantly the court. 

Executors are either appointed by the deceased person that made their Will or by the court. Usually when someone makes a Will or a Trust, it is necessary for them to choose an Executor, someone they can trust to make sure their wishes are kept and that their estate is in safe hands. When someone dies without a Will or dies with no Executor indicated in their Will, an Executor will be appointed by a judge in the Probate court process. States usually have guidelines that list which relatives are eligible and the order of preference. 

Executor – Someone that is appointed by either the Will maker or the court to manage the deceased person’s estate.

Beneficiary – A person named in a Will, that will inherit part of the benefit of a deceased person’s estate. 

Duties of the Executor 

• Making an inventory of all assets 
• Communicate with all beneficiaries, accountants, and other parties involved
• Calculating the value of the estate
• Settling debts on the estate
• Selling/transferring property or investments 

Example – John is recently deceased. 5 years before John died, he went to an Estate Planning lawyer to write a Will. The Estate Planning lawyer told him he needed to assign an Executor, someone he trusted to make sure his house, car, boat, cash, and other assets were transferred to his loved ones. John chose his brother Ted. 

After John passed away, John’s family entered the Probate court process. Since Ted was the Executor, he was in charge of transferring John’s funds to his children’s bank accounts, dealing with accountants and professionals, and making sure John’s last wishes are kept. 

Probate Process 

Probate is the legal process of settling an estate at the time of one’s death. The first step in the process is to file the Last Will and Testament to the Probate court. They will usually schedule a court hearing after this to determine the validity of the Will and determine or approve the Executor. Beneficiaries and family members will be noticed and given the opportunity to appear and contest the proposed course of action. Once the Executor is appointed, he/she will begin to gather assets and notify creditors of the death. They will have to file an inventory of all assets in the estate. Within 8 – 18 months the Executor will be ready to close the estate and present a proposed accounting list offering all assets and who will receive them. At this point, interested parties must appear in court and approve the plan. 

Can the Executor Take Everything? 

Now that you know a little bit more about the Probate process you might be able to guess that the Executor cannot keep everything. The Executor has no right in taking everything unless that is what is written in the Will. It is very rare that a person writes a Will appointing an Executor and leaves everything in their name as well. But being an Executor as well as partial beneficiary is not uncommon. 

The Executor cannot do anything that goes against what is clearly written in the Will. The Executor also cannot act upon the estate prior to being appointed by the court. The Executor must treat the deceased persons’ assets as if they were their own, so they cannot sell anything below fair market value, unless agreed upon by the beneficiaries. Changes cannot be made to the Will by the executor or anyone else. If any of these things are broken, or if anyone believes the Executor is not managing the estate properly, they have the right to file a petition for the removal of the Executor. Serious violations in the management of an estate could result in a civil lawsuit.

The post Can the Executor of a Will Take Everything? appeared first on Hartford CT Estate Planning Lawyers.

Thinking about Estate Planning? There’s so much information out there that it can be overwhelming. It’s understandably confusing for many people, but it doesn’t have to be. Here is our checklist to help guide you through the Estate Planning process.

1. List Your Assets
2. Consider Your Family’s Needs
3. Decide On Beneficiaries
4. Think About Your Needs
5. Consider Giving to Charity
6. Who Will Get What
7. Seek Professional Help
8. Provide Documents
9. Review and Adjust Over Time

1. List Your Assets

What are Assets-property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies.

As a first step, we recommend listing everything you own that you wish to pass on as well as its corresponding value. No matter how little or how much you own, listing everything is very important if you want to leave things orderly after your passing. This includes cars, homes, bank statements, life insurance policies, and also debts. And don’t forget to assign a nominal value along with the listings as this will come in handy later.

Some Examples of Assets Include:

● Vehicles
● Boats
● Homes and Real Estate
● Jewelry
● Artwork
● Electronics
● Cash
● Gold or other valuable metals
● Life Insurance Policies
● Bank Accounts
○ Checking and Savings Accounts
○ Brokerage / Investment Accounts
○ 401k, Roth IRA, and Other Retirement Accounts

Debts

● Credit Card Statements
● Mortgages
● Student Loans

2. Consider Your Family’s Needs

After considering your assets we recommend you consider your family’s needs? What type of life do you wish for your family after you pass away? Are there any specific accommodations you’d like for your family?

Feel free to write down the answers to these questions on a piece of paper. This step is very important because it will keep the end goal of your Estate Plan into perspective. At the end of the day, people don’t do Estate Planning for selfish reasons, they do it to take care of their family.

3. Decide on Beneficiaries

Now that you’ve considered your family’s needs, it’s time to decide who will be beneficiaries, i.e. who are the people that will receive assets from your Estate Plan after your death.

Deciding who from your family and friends will be a beneficiary is one of the most important aspects of Estate Planning. It doesn’t have to be one single person that inherits everything, but it can be several people that will inherit several different parts of your estate. You will most likely prioritize your family, but you should also think about who you might want to receive some of the smaller assets and especially those of particular sentimental value.

Write down everyone you have in mind. It doesn’t have to be a definitive list because it can always be changed.

4. Think About Your Needs

You are probably hoping for a painless passing that will come at an appropriate age, but we cannot control what will come in the future and it is important to be prepared for other scenarios. Sometimes the estate plan is thought off as only being beneficial to other after you’re gone but planning can be useful to have in place in case you become incapacitated. This will eventually include appointing a trusted person to make medical decisions for you if you cannot, also known as Medical Power of Attorney. When you become incapacitated you might also want someone to take care of business matters for you, this is known as a Durable Power of Attorney.

5. Consider Giving to Charity

Giving to charity means different things to different people. Some people like the idea of giving a part of their estate to charity when they die. People like Bill and Melinda Gates have pledged to give a sizable chunk of their estate to charity, throughout their life and when they die. Leaving a legacy for the benefit of other people attracts a lot of people when creating an Estate Plan. So, make sure you give it a good thought, think about who or what you want to donate to, and how much you would be able to give.

If you cannot afford or don’t desire to give to charity there is nothing wrong with that. After all it is not a requirement and you should prioritize your family’s needs first. But if your family is already very well-off or has a history of squandering money in lavish ways, you may want to think about how that money could be used for the most good.

6. Who Will Get What

So far in this Estate Planning checklist you have a list of assets, their values, and a list of beneficiaries, it’s time to consider who will get wheat. You may already have this in mind but it’s worth reminding you to think on it and write it down.

You’re choices may not be as obvious as an outsider would assume. For example, an outsider (or Judge) may think your home would go to your son. Your son may seem like the obvious choice since he is your only child but you may be aware of circumstances that make this choice less obvious. For example, if your son owns his own company that operates in a different state and he would simply sell the house and he may already be well-off and not need the money; meanwhile your niece rents an apartment nearby because while she is hard-working she is not able to afford a house of her own and you two were close, perhaps she is obvious choice in your mind.

This example demonstrates one of the many reasons you want to do estate planning; without it a probate court judge may make assumptions on who should get what and his choices won’t always reflect your wishes. who you want to get which pieces of your estate. This step is important to get a clearer picture of your estate plan and to make sure you didn’t forget any assets or beneficiaries.

7. Seek Professional Help

At this point you’re ready to make things official and file the right paperwork. But doing Estate Planning yourself is a daunting and stressful task and you won’t think of every scenario to plan for. Without prior knowledge of legal paperwork and legal procedures, you will most likely be drowning in a sea of paperwork. To top it all off, you might not know if you did it right in the first place and this may bring anxiety to a process that should put your mind at ease. And your hard work could prove worthless in the end if your plan isn’t properly set up, this could mean your family will have to endure unnecessary stress from the probate court.

Attorneys and lawyers sometimes get a bad rap, but you cannot dismiss 7 plus years of higher education. Estate Planning lawyers dedicate their life to helping people plan their Wills and Trusts. They know the process inside and out, and they truly take the stress out of Estate Planning. The only thing you have to do is to think about the steps above and provide the correct documentation.

An Estate Planning Attorney will also help you with all the fine details, for example setting up a health care power of attorney, durable power of attorney, deciding between a Will or Trust, help you qualify for title 19, set up a special needs trusts if it’s right for your family. These are the types of things that end up being worth the cost of hiring a professional in the long run.

8. Provide Documents

Once you have your initial consultation with the attorney, you will most likely be asked to provide certain documents to help the attorney prepare your estate plan. This list of documents may include photos of your family, real estate documents, bank account statements, life insurance declarations, stock certificates, etc.

For the full list of documents needed click here – (link to blog or video)

9. Review and Adjust Over Time

Once your estate plan is set, it’s time to relax and celebrate. But don’t forget to check on it and reread it every 3 to 5 years, you might find some things that need changing. Nobody can predict the future, and there may be many changes in your family or financial situation, so periodic review is crucial.

If you do decide to make changes to your Will or Trust, just contact the attorney that helped you create your Estate Plan, and they would be more than happy to help you.

In case you need more info about what to think about when Estate Planning, here’s a great article from The Motley Fool. If you are ready to start the Estate Planning process, we would be delighted to help you. Give us a call or Click Here.

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