Estate planning is a vital process that involves making important decisions about the management and distribution of your assets. Whether you’re starting from scratch or revisiting an existing plan, having a structured approach can make a significant difference.
At Riverbend Wealth Management, we use a comprehensive Estate Planning Documents Checklist to guide our clients through this complex process.
What are Estate Planning Documents?
Estate planning documents are a collection of legal instruments that outline an individual’s wishes regarding the management, preservation, and distribution of their assets during their lifetime and after death.
These documents specify how financial, health care, and personal decisions should be handled according to the individual’s preferences, providing clarity and direction for loved ones and legal representatives.
Key estate planning documents typically include
- wills
- trusts
- powers of attorney
- health care directives
- beneficiary designations
Riverbend’s Estate Planning Documents Checklist
At Riverbend Wealth Management, our estate planning documents checklist is designed to serve as a guide for clients beginning their estate planning journey.
This checklist is a tool that can help you review whether you have the proper documentation and are satisfied with your current plan’s setup.
Here’s how our checklist can assist you:
- Comprehensive Review: The checklist allows you to systematically review all essential estate planning documents; this includes everything from your Last Will and Testament to specific powers of attorney and trust arrangements.
- Identify Gaps: By following the checklist, you can identify any missing documents or updates that may be needed. This helps in pinpointing areas that require attention, such as outdated beneficiary designations or changes in personal circumstances.
- Peace of Mind: Knowing that you have a complete and up-to-date set of estate planning documents can provide peace of mind. The checklist aids in confirming that your wishes are clearly documented and that your loved ones will have the guidance they need to carry out your instructions.
By utilizing our estate planning documents checklist, you can take proactive steps to tailor your estate plan according to your wishes.
Below we will explain the components of the checklist, however, here is a comprehensive document that you can save for you records: Riverbend’s estate planning documents checklist.
Threshold Issues
Before diving into specific documents, it’s important to address some threshold issues. These include:
- Assessing Assets and Liabilities: A comprehensive list of all assets (real estate, investments, personal property) and liabilities (mortgages, loans) should be prepared.
- Identifying Goals: Clearly define what you wish to achieve with your estate plan. This might include providing for family members, minimizing taxes, or supporting charitable causes.
- Selecting Key Individuals: Decide who will be appointed to roles such as executor, trustee, and guardian for minors.
- Reviewing Beneficiaries: Ensure that beneficiary designations on accounts and policies are up-to-date and aligned with your overall estate plan.
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Have you recently changed residency? |
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Do you need to review the applicable laws and any changes that have occurred since you executed your documents (state or federal)? |
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Do you need to confirm and share the location of your original documents? |
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General Power of Attorney
A General Power of Attorney (GPOA) is a crucial document that grants someone authority to manage your financial affairs if you become incapacitated.
Considerations include:
- Scope of Authority: Define the extent of powers granted. This might cover banking transactions, real estate dealings, and managing investments.
- Choosing an Agent: Select a trustworthy and financially savvy individual to act on your behalf.
- Revocation Clause: Include provisions for revoking the power of attorney if circumstances change or if the agent is no longer suitable.
| General Power of Attorney Checklist | Yes | No |
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Do you need to confirm the terms of your General POA? |
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Do you need to review your appointed agents? |
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Do you want to limit your agents’ powers? |
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Is there a need or good reason to record your General POA? |
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Have you revoked any prior General POAs? |
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Health Care Power of Attorney and Living Will
Health care decisions are another vital aspect of estate planning, addressed through documents such as the Health Care Power of Attorney and Living Will.
- Health Care Power of Attorney (HCPOA): Designates someone to make medical decisions if you are unable to do so. Select a person who understands your medical preferences and can make decisions under pressure.
- Living Will: Specifies your wishes regarding life-sustaining treatments in terminal conditions or persistent vegetative states. This document should be explicit about the treatments you do or do not want.
| Healthcare Power of Attorney and Living Will Checklist | Yes | No |
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Do you need to review your appointed agents? |
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Are you planning to undergo a health procedure? |
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Do you need to review your Health Care POA to confirm HIPAA authorizations? |
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Do you need to confirm that you clearly expressed your wishes regarding your end-of-life treatment options? |
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Last Will and Testament
The Last Will and Testament outlines how your assets will be distributed after death.
- Distribution of Assets: Clearly state how assets should be allocated among beneficiaries. Consider specific bequests for personal items.
- Executor Appointment: Choose a reliable individual or institution to execute the will. The executor should be capable of handling administrative and legal responsibilities.
- Guardianship for Minors: If applicable, appoint a guardian for minor children to ensure their care and well-being.
| Last Will and Testament Checklist | Yes | No |
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Do you need to review your Executor/Personal Representative appointments and successors? |
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Do you have minor children? |
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If you hold any testamentary powers of appointment, have you properly exercised them under your Will? |
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Do you need to review the allocation of the estate and/or inheritance tax burden? |
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Do you have a plan for your digital assets and information? |
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Does your Will refer to a tangible personal property memo? |
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Irrevocable Trusts
Irrevocable trusts are powerful tools for estate planning, offering benefits such as tax reduction and asset protection.
- Purpose: Define the specific purpose of the trust, whether it’s for tax planning, protecting assets from creditors, or providing for beneficiaries with special needs.
- Trustee Selection: Choose a competent trustee who will manage the trust according to your instructions. This could be a trusted individual or a professional fiduciary.
- Funding the Trust: Transfer assets into the trust in a manner that aligns with your estate planning goals.
| Irrevocable Trusts Checklist | Yes | No |
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Do you have an ILIT? |
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Do you have a split-interest trust, such as a CRT or CLT? |
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Do you have a SLAT or a GRAT? |
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Do you have a QPRT? |
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Do you need to confirm that income tax returns are properly filed for your irrevocable trust(s)? |
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Are your actions consistent with the terms of your trust? |
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Revocable Living Trust
A Revocable Living Trust allows you to manage and distribute your assets during your lifetime and after death, offering flexibility and privacy.
- Control and Flexibility: Retain control over the trust assets and make changes as circumstances evolve. This is beneficial for those who want to maintain flexibility.
- Avoiding Probate: Assets in the trust bypass the probate process, leading to a quicker and potentially less costly distribution to beneficiaries.
- Trustee Appointment: Designate a trustee who will manage the trust if you become incapacitated and after your death. This ensures continuity in asset management.
| Revocable Trusts Checklist | Yes | No |
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Do you need to review your Trustee/Co-Trustee appointments and successors? |
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Do you have beneficiaries with special needs? |
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Do you need to review the allocation of the estate and/or inheritance tax burden for assets passing under your trust? |
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Does your Will pour over into your trust? |
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Did you, or do you need to, fund your trust during your lifetime? |
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Miscellaneous Estate Planning Documents
Other essential documents and considerations may include:
- Beneficiary Designations: Regularly review and update beneficiaries on retirement accounts, life insurance policies, and other financial instruments.
- Letter of Intent: While not legally binding, this document can provide guidance to your executor and beneficiaries regarding your personal wishes and instructions.
- Digital Assets: Include instructions for accessing and managing digital assets, such as social media accounts, online banking, and digital photo libraries.
- Regular Review: Periodically review and update your estate plan to reflect changes in your life circumstances, such as marriage, divorce, births, and deaths.
| Miscellaneous Checklist | Yes | No |
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If you have a premarital agreement, do you need to ensure that your estate plan is in alignment? |
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Do you need to review your nonprobate transfers, to ensure that they align with the planning under your Will and trust? |
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Do you need to add flexibility to your plan (e.g., by designating a trust protector), to allow changes should unforeseen circumstances arise in the future? |
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Are you concerned about a future Will or trust contest? |
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The Importance of Estate Planning Documents
Creating a comprehensive estate plan is an essential step in managing and protecting your assets. By carefully preparing and maintaining key estate planning documents, you can provide clear guidance for your loved ones and legal representatives, helping them make informed decisions aligned with your wishes.
Taking the time to gather and organize your estate planning documents can bring peace of mind and financial security for your family. In addition to this resource, you can use our estate planning checklist as a guide to confirm whether you have other necessary components in place.
If you want to learn more, contact us for personalized assistance in creating a robust estate plan tailored to your unique needs and goals.
