You’ve stocked up on the essentials (but not too stocked up), you’re navigating the new world of social distancing and you are wondering what other precautions you may be missing. We are providing the following checklist to give you peace of mind or give you some simple actions you can take to shore up your estate plan and while you may have a bit of extra time on your hands. As estate planners we are personally following this advice as well.
Trust, but Verify
Have you already created an estate plan? That’s great! It’s a good time to give it a quick once over to verify that all provisions made in the estate plan are exactly as you want them (and that you can remember where you put it).
Here are some items to help guide you in that review:
Are your assets accurately inventoried? Have an up-to-date inventory of your bank accounts, retirement accounts, real estate and life insurance in particular is very important.
Have you left out any important assets or neglected to report changes? If you have purchased or sold real estate, refinanced, changed banks, changed jobs or opened or closed any accounts, you may need to make updates to ensure that these assets are properly titled.
Are your beneficiary designations accurate? If you have a new policy, or have divorced, had children, or perhaps never got around to naming beneficiaries correctly in the first place, request the form (or confirmation) and make sure these are up to date.
Are your assets going where you would like them to? This question may seem obvious, but it is important to check for beneficiaries that you may not be close with or charities that need to be changed or updated.
When was the last time you reviewed your selection of agents or fiduciaries? Being named as someone’s Executor, Successor Trustee, or Agent under a Power of Attorney, can be a time consuming job. It is important that you review your selections periodically to ensure that those people are still the best choice to act on your behalf.
Consider Planning, If You Haven’t Already (or have been putting it off)
If you don’t have an estate plan yet, don’t worry. Now is a great time to connect with a qualified estate planning attorney who can get you started with an appropriate plan for your financial future. Here are some questions to begin the process:
Do you have a will? An attorney can help you create an accurate and intentional will if you do not already have one.
Have you considered using a trust? Trusts have considerable benefits, from avoiding probate to keeping assets safe from creditors to protecting those that are unable to manage the inheritance themselves.
Are your children protected? An attorney can help you designate a guardian to care for your minor child in the event you are unable to. An attorney can also help you name an adult who will manage your minor child’s inherited property if you pass away. These may or may not be the same people.
Have you considered life insurance? If you anticipate leaving behind significant debt or hefty estate taxes, or if you have small children, you may want to consider a life insurance policy. Knowing your dependents are provided for will give you peace of mind.
Is your business protected?If you own a business, have you named an individual to manage your interest if you cannot? Do you have a business succession plan? If you co-own a business, have you drawn up a buyout agreement? An attorney can help with that as well.
Estate planning with a trusted attorney is an important part of ensuring your financial health and preserving the legacy you’d like to leave to your loved ones. As you’re giving thought to what you need to do to make sure you and your family are protected during uncertain times, don’t neglect your estate plan. We can help you put a plan in place that will reassure you and your family.