10/16/2017
TEN SECRETS TO PLANNING YOUR ESTATE
Copyright 2017 by Bradley Wm. Bowen, JD, CPA
Planning your estate is easier than you think! By answering the following ten questions you will have the critical information needed to draft your estate planning documents. You will have peace of mind when you implement an estate plan, so take ten minutes now to answer the following questions:
1. Determine whether or not you need to do estate tax planning. If the combined estate of you and your spouse will total less than $5,490,000 upon the death of the last to die of you and your spouse, then you don’t need to do estate tax planning. If your assets are expected to exceed $5,490,000, then you should prepare a detailed list of all of your assets and how they are titled to take with you when you meet with your attorney. The list should include all real estate, life insurance, retirement plans, stocks, bonds, cash, certificates of deposit, vehicles, gold, silver, diamonds, collectibles, other valuables, and all companies in which you own an interest. Don’t forget to list any debt associated with each asset.
2. Who do you want to serve as personal representative or executor, of your estate? This person will collect the assets, pay the debts, and distribute shares to adult heirs and to a trustee for minors. People who are good with money are preferred. You should name an original and two alternates, if possible.
3. Who do you want to serve as trustee of a minors’ trust to administer assets for children who are not adults when you pass on? This person will invest, manage, and distribute assets as you direct. People who are good with money are preferred, and many clients name the same people as in 2. You should name an original and two alternates, if possible.
4. Who do you want to make decisions about your health care if you cannot make decisions yourself? Although some clients name the same individuals as in 2, others prefer family or friends whom they perceive as compassionate, caring, patient, and who will be specially concerned with their physical, emotional, and psychological well-being. You should name an original and two alternates, if possible.
5. Who do you want to raise your minor children? The guardian of your children should be a person who shares your values - that will teach, train and care for your children as you would have done. You should name an original and two alternates, if possible.
6. Do you want to provide your children with asset protection for their share of your estate s upon the death of the last to die of you and your spouse? Each child’s share of your estate may be held in trust for the child’s life-time to protect the assets from a child’s divorce, bankruptcy, business failure, liability arising from an automobile accident, or other catastrophe. Clients with larger estates frequently include such provisions in their estate planning.
7. If assets are to be distributed outright to your children, at what age do you want distribution to be made? Assets are often held in trust and distributed for health, education, support, and maintenance until the child attains a certain age, at which time distributions of principal are made. For example, one-third at age 35, one-third at age 40, and one-third at age 45.
8. What is your full legal name, what other names have you used, and how do you sign your name? Most people sign their name different from the name on their birth certificate, and we need to know how you sign your name.
9. What are the full legal names and birthdates of each of your children?
10. If you, your spouse, and all of your lineal descendants die at the same time (such as in a plane crash or fatal automobile accident) to whom do you want assets distributed? Examples include leaving bequests to specific extended family members, an education trust for nieces and nephews, friends, one-half of the combined estate to the heirs at law of each spouse, bequest to charity, etc.
CONCLUSION
Planning your estate is easy, and it only takes a few minutes to compile the critical information needed to draft your estate planning documents. Leave your children with family, travel, and grow older with peace of mind by knowing that your wishes will be implemented if you pass on.
CALL TO ACTION
Print the above list, write your answers to each question, and call me at 801-532-7080 to prepare your estate planning documents! You may email me at [email protected].
