Top Ten Tips for Effective Estate Planning

Top Ten Tips for Effective Estate Planning www.zeekbeek.com 

1.  A Will is good --but there is some property, called "non-probate" property, that does not pass under your Will and is therefore not controlled by the terms of your Will.  Some common types of non-probate property are: life insurance, IRAs and retirement benefits and bank accounts or homes that are owned jointly with another person with right of survivorship.  For example, if you make a Will leaving all your property to your husband, but you own a home jointly with your brother with right of survivorship, then when you die your brother gets the home, not your husband.  For life insurance and IRAs and retirement benefits the person who is named on the beneficiary designation form will receive the property when you die, again regardless of what your Will may say.  So make sure your designations are up to date and reflect your current wishes, and make sure you clearly understand what will happen to your property at death. 

2.  Avoid strife, name a guardian for your minor children-- and make sure you and your spouse or other co-parent both name the same person!  This is an emotional topic but it’s important to discuss it with your spouse or co-parent and also with the prospective guardian ahead of time. 

3.  If you have a child with special needs, a trust is a must!  There are a few different types of trusts that can be used, but the bottom line is that a properly drafted trust will protect your child and also permit your child to access all available benefits.       

4.  Trusts can also help with many other situations including caring for young children, protecting the inheritance of children from a prior marriage, and providing for children who have problems managing money, just to name a few.  Remember, trusts are not just for the elite few, but now come in styles to suit almost every need.

5. Don't forget about your digital assets -- Facebook, email accounts, etc.  It can be hard for loved ones to access those assets after death without some advance planning. 

6.  Plan for incapacity, both medically and financially, with a health care proxy and living Will (for medical matters) and a durable power of attorney (for financial matters).  Different states use different names for the health care proxy but the effect is the same, namely, to designate someone to make medical decisions for you in the event that you are unable to do so.  A Living Will is helpful to provide additional guidance to your health care agent and other family members, but it is not legally binding.  A durable power of attorney gives someone the power to make financial decisions for you in the event you become unable to do so.  For financial matters a revocable (living) trust can also be an option worth considering as it can be used to  manage property in the event of incapacity. 

7.  Mind the gap- the federal exemption is north of $5 million, but some states still impose state estate tax at $1 million, so you may need tax planning.  Most states seem to be phasing out the state estate tax, but that may not happen immediately.

8.  Make sure your documents are properly signed, witnessed and/or notarized as the law requires.  Remember, these are important legal documents that you are relying on and if you fail to follow these rules your documents may not be effective.

9.  Keep your documents in a safe place and make sure your loved ones know where they are – but never keep them in a safe deposit box!  They need to be secure but they also need to be immediately accessible by your loved ones in the event they are needed.

10.  The only certainty in life is change, so review your estate plan periodically to make sure it still reflects your wishes and provides properly for your loved ones.    


Disclaimer – Blog Not Legal Advice

This blog is not legal advice and no attorney-client relationship is formed.  The information and materials on this blog are provided for general informational purposes only and are not intended to be legal advice.  The law changes frequently and varies from jurisdiction to jurisdiction.  Being general in nature the information and materials provided may not apply to any specific circumstances.  Nothing on this blog is intended to substitute for the advice of an attorney.  If you require legal advice, please consult with an attorney licensed to practice in your jurisdiction.