Estate planning is a critical process that involves organizing and managing your assets, affairs, and wishes to be carried out upon your incapacitation or death. It encompasses a variety of legal documents and strategies aimed at protecting and distributing your estate according to your preferences.
Estate planning can be best understood as a structured approach to having your financial and personal matters are handled in a manner that reflects your intentions. This includes the distribution of assets, designation of guardians for minors, and articulation of healthcare directives.
What is an Estate Planning Checklist?
An estate planning checklist serves as a practical guide to help individuals navigate the complex components involved in estate planning.
This type of checklist is great for those starting to consider their estate plans and for those needing to revisit and update their existing plans.
Below, outline a detailed estate planning checklist, covering areas such as:
- beneficiary and fiduciary issues
- assets and property-related concerns
- minors and children-related matters
- and other pertinent considerations
Our checklist is designed to provide an understanding of what needs to be addressed in estate planning.
While this checklist might not cover every single aspect of a comprehensive estate plan, it will help you answer the right questions, which will provide you with the necessary foundation for starting a conversation with an estate planning professional.
The Riverbend Estate Planning Checklist
Covering Beneficiary and Fiduciary Issues
Estate planning involves several critical decisions, particularly concerning beneficiaries and fiduciaries. Understanding and addressing these components can significantly impact how your estate is managed and distributed.
Section 1.1: Reviewing and Updating Beneficiaries
Beneficiaries are individuals or entities designated to receive assets from your estate, such as through life insurance policies, retirement accounts, and other financial instruments.
Life changes such as marriage, divorce, the birth of a child, or the death of a previously designated beneficiary can affect your preferences and need to be reflected in your estate plan.
- Confirm all beneficiary designations are up-to-date.
- Consider secondary (contingent) beneficiaries in case the primary beneficiaries predecease you.
Section 1.2: Choosing the Right Executor
The executor of your will is responsible for managing your estate through the probate process, which includes settling debts, distributing assets, and having your wishes are carried out.
Choosing the right executor is vital because this person will handle significant responsibilities and potentially navigate complex legal and financial matters.
- Select someone trustworthy, organized, and capable of handling the responsibility.
- Discuss your decision with the chosen person to confirm whether they are willing and able to serve in this role.
Section 1.3: Designating a Durable Power of Attorney
A durable power of attorney (POA) allows an individual to make financial and legal decisions on your behalf if you become incapacitated.
This role will manage your affairs, confirming that bills are paid, investments are managed, and legal matters are addressed even if you cannot oversee them yourself.
- Choose someone who understands your financial situation and has your best interests in mind.
- Confirm the POA document is comprehensive and legally binding.
Section 1.4: Selecting a Healthcare Proxy
A healthcare proxy, or medical power of attorney, is designated to make healthcare decisions on your behalf if you are unable to do so.
This person will advocate for your medical preferences, while directing healthcare providers to follow your wishes regarding treatments, surgeries, and other medical interventions.
- Select someone who knows your healthcare preferences and will advocate for your wishes.
- Clearly communicate your healthcare directives and end-of-life care preferences to your proxy.
| Beneficiary and Fiduciary Issues | Yes | No |
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Have any individuals named as beneficiaries or fiduciaries (e.g. Executor, Trustee) passed away? |
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Are there any individuals (or charitable organizations) that should be added or removed as beneficiaries (primary or contingent)? |
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Have there been any marriages or divorces that would impact your estate plan? |
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Is there a beneficiary with special needs receiving government assistance? |
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Do you need to protect any beneficiaries from a divorce, creditor issues, substance abuse or gambling issues? |
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Has the Power of Attorney changed or need to be updated? |
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Do you want to update any of your intentions as outlined in your Living Will? |
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Assets and Property Related Issues
Properly managing your assets and property is a fundamental aspect of estate planning. This section addresses considerations regarding the way your assets are distributed.
Section 2.1: Cataloging All Assets
Creating a detailed inventory of all your assets is the first step in effective estate planning. This includes real estate, bank accounts, investments, personal property, and digital assets.
- Include detailed descriptions and valuations of each asset.
- Regularly update the inventory to reflect new acquisitions or disposals.
Section 2.2: Titling Assets Correctly
The way assets are titled can significantly impact their transfer upon your death. Proper titling will help the distribution process, potentially helping you avoid probate while minimizing inheritance tax liabilities.
This involves understanding different forms of ownership, such as joint tenancy, tenancy in common, and community property.
- Review how each asset is titled and make necessary changes to align with your estate planning goals.
- Consider designations like payable-on-death (POD) or transfer-on-death (TOD) to streamline the transfer process.
Section 2.3: Setting Up a Living Trust
A living trust allows you to manage your assets during your lifetime and specify how they should be distributed after your death.
It provides privacy, avoids probate, and can be more difficult to contest than a will. A living trust can be particularly beneficial for large or complex estates.
- Determine which assets should be placed in the trust.
- Choose a reliable trustee to manage the trust according to your wishes.
Section 2.4: Planning for Digital Assets
In today’s digital age, digital assets such as online accounts, social media profiles, and cryptocurrencies are increasingly significant. Planning for these assets will help keep them accessible to your beneficiaries after your death. This aspect of estate planning is often overlooked but is essential for a comprehensive plan.
- Make a list of all digital assets and include login information.
- Specify how these assets should be handled, including whether they should be deleted, memorialized, or transferred.
| Asset and Property Related Issues | Yes | No |
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Do you expect your estate will exceed your unused federal estate and gift tax exclusion amount (maximum $11.7 million, or $23.4 million if you are married)? |
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Could there be assets that were not identified in the current estate plan? |
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Have you bought or sold a second residence? |
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Do you own homes, investment property or tangible property in two or more different states? |
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Have there been any material changes to your assets (ownership or valuation)? |
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Minors and Children Related Issues
Estate planning is especially important for parents with minor children or children with special needs. Addressing these issues helps to see that your children are cared for and financially supported according to your wishes.
Section 3.1: Designating Guardians for Minor Children
Designating a guardian for your minor children is one of the most important decisions you will make in your estate plan.
A guardian will take on the responsibility of raising your children if you are no longer able to.
- Choose a guardian who is willing and able to take on the responsibility.
- Consider the potential guardian’s values, lifestyle, and relationship with your children.
- Discuss your decision with the chosen guardian to see if they agree to take on this role.
Section 3.2: Establishing Trusts for Minor Children
Establishing trusts for minor children helps safeguard their inheritance until they reach an appropriate age. Trusts can provide for your children’s education, living expenses, and other needs in a structured manner, preventing them from receiving large sums of money at a young age.
- Decide on the terms of the trust, including the age at which the children will receive their inheritance.
- Choose a trustworthy and capable trustee to manage the trust.
- Specify how the trust funds should be used, such as for education, healthcare, and other essentials.
Section 3.3: Planning for Special Needs Children
If you have a child with special needs, careful estate planning will help to see that they’re cared for without jeopardizing their eligibility for government benefits. A special needs trust can provide for their extra needs while preserving their access to benefits like Medicaid and Supplemental Security Income (SSI).
- Establish a special needs trust to provide for your child’s care without affecting their benefits.
- Choose a knowledgeable and reliable trustee who understands the unique requirements of managing a special needs trust.
- Outline specific instructions and provisions for your child’s care and financial needs.
| Minors and Children Related Issues | Yes | No |
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Have any of your children reached age 18 (or the age of majority in your state)? |
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If you have children under age 18, have there been any changes to guardians or trustees? |
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Do you have an adult child who has no spouse or child? |
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Other Issues Related to Estate Planning
In addition to managing assets and providing for beneficiaries, several other considerations can significantly impact the comprehensiveness and effectiveness of your estate plan. These issues help make certain that all aspects of your wishes are respected and executed properly.
Section 4.1: Funeral and Burial Wishes
Documenting your funeral and burial wishes can relieve your loved ones of making these difficult decisions during a time of grief. It reflects your personal, cultural, or religious beliefs regarding your final arrangements.
- Specify your preferences for burial or cremation.
- Outline details such as the type of service, location, and any specific requests for the ceremony.
- Communicate your wishes to your family and include them in your estate plan documentation.
Section 4.2: Considerations for Pets
For pet owners, making arrangements for the care of pets after your passing is an important part of estate planning. This can include designating a caregiver and setting aside funds for their care to provide for their continued well-being.
- Designate a trusted person to care for your pets.
- Provide detailed care instructions, including dietary needs, medical history, and routines.
- Consider setting up a pet trust to allocate funds for their ongoing care.
Section 4.3: Regularly Reviewing and Updating the Estate Plan
Life circumstances and laws change, making it important to regularly review and update your estate plan. This helps keep your plan relevant and accurately reflects your current wishes and circumstances.
- Schedule regular reviews of your estate plan, at least every few years or after major life events (e.g., marriage, divorce, birth of a child, significant changes in assets).
- Update beneficiaries, guardians, and fiduciaries as needed.
- Make sure that all legal documents are current and accurately reflect your intentions.
The Importance of a Comprehensive Estate Planning Checklist
Creating a comprehensive estate plan is a critical step in protecting your legacy and having your wishes honored. This estate planning checklist provides a detailed guide to help you address essential components, from beneficiary and fiduciary issues to assets, minors, and other important considerations.
By systematically working through each section, you can create a thorough plan that helps minimize conflicts and potentially provide peace of mind for you and your loved ones.
At Riverbend Wealth Management, we understand the complexities of estate planning and are here to assist you every step of the way. Contact us today for a free 15-minute financial assessment and let our team help you plan for your future.
Get the full estate planning checklist here:
