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Date
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Item
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Actions
needed
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__/__
|
Is your will
up-to-date?
A review every
3 or 4 years is often enough. However, the 2001 Tax Act made changes
in estate taxation that should prompt a review. In addition, any
significant changes in your family or financial status may make
a review beneficial.
|
1.
2.
3.
|
|
__/__
|
Who is the
"executor" of your estate?
This person
will oversee the activities of your estate until it is terminated
(often a year or more). Be sure the person you choose is capable
of handling the task and understands your wishes.
|
1.
2.
3.
|
|
__/__
|
Who is the
guardian of your minor children?
If you have
chosen a family member, are they aware of your choice and are they
willing to accept that responsibility?
|
1.
2.
3.
|
|
__/__
|
Do you have
a current "power of attorney for medical care?"
This document
becomes critical if you are unable to make medical decisions and
it also can spell out treatment options.
|
1.
2.
3.
|
|
__/__
|
Do you have
a current "power of attorney for finances?"
This document
names someone to handle your finances if you are unable to do so.
Be sure the person you choose understands the responsibility. Without
this document, it may be necessary to get court approvals for even
relatively minor decisions and transactions.
|
1.
2.
3.
|
|
__/__
|
Have you
considered a "revocable living trust?"
These ownership
arrangements are widely used to help minimize potential probate
costs and are relatively easy to establish.
However, getting
professional help is a good idea.
|
1.
2.
3.
|
|
__/__
|
Have you
considered a life insurance trust to own your life insurance policies?
Life insurance
proceeds are not subject to income taxes. However, if the proceeds
of your policy pass to your estate, the proceeds may raise the size
of your estate and result in increased estate taxes.
Life insurance
trusts are relatively common and not difficult to establish with
professional help.
|
1.
2.
3.
|
|
__/__
|
Does your
will provide for the establishment of a spousal trust or other trusts?
Many wills provide
for trusts to be established to minimize any estate taxes due on
the death of a first spouse. The 2001 Tax Act changed the level
where estate taxes begin to be due. Be sure your will properly reflects
these changes.
|
1.
2.
3.
|
|
__/__
|
Do you have
sufficient life insurance to enable your survivors to maintain a
comfortable financial lifestyle?
Many advisors
suggest life insurance coverage should be at least six to ten times
your income. Young children, dependents with special needs, large
debts or other issues may make larger amounts desirable.
Consider the
benefits and costs of term versus whole life types of policies.
|
1.
2.
3.
|
|
__/__
|
Are
your important financial papers and information readily available
and in an organized condition? |
1.
2.
3.
|
|
__/__
|
Should you
be making annual gifts to family members now to reduce your future
estate value?
This may save
estate taxes and those receiving the gifts may need it more now
instead of later.
|
1.
2.
3.
|
|
__/__
|
Does
the ownership structure of your major financial assets, including
your home, enable them to be transferred without probate costs? |
1.
2.
3.
|
|
__/__
|
Are your
retirement plan (and IRA) beneficiary designation forms up to date?
These signed
documents often dictate who will get these funds instead of your
will.
|
1.
2.
3.
|
|
__/__
|
Are there
certain assets you want to go to certain individuals?
Family heirlooms
or other "special" assets you want given to certain people should
be identified in your will.
|
1.
2.
3.
|
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