15 ESTATE PLANNING TIPS

Here are some important considerations for planning your estate.

1. Start Early and Avoid the Rush Later
Timing is important with Estate Planning. The earlier you establish an estate plan, the better the results. Many things can be done early (such as transferring property into a Trust, etc.) that can’t be done later. Remember, the law has recently changed regarding the “look back” period for transferring property out of your name to five years. It’s also a lot better to plan in advance when your mind is clear and there is less stress instead of when you’re facing the prospect of imminent medical problems or worse. Also, by starting early, more options may be available to you that may disappear as time goes by.

2. Don’t Let The State Tell You
How Your Estate is to be Distributed
If you die without a Will, the state in which you legally reside at the time of your death will determine who gets what and how. When the state does this, it’s called “intestacy” and the state directs who will act as Administrator and what proportions are given to everyone related to you. If you don’t leave any heirs, then your Estate could conceivably go to the State. However, when you leave a Will, you decide who gets what and how it is divided.

3. Make a Full Inventory of Assets
Prepare a full inventory of all your assets and include where each is located, together with passwords, serial numbers, etc. Make sure your Executor/Executrix, and their Alternate, know where your list of assets is located so they can find it after you’re gone. That way, you will save the Executor a great deal of time and energy trying to locate everything. It also ensures that everything passes through your estate so it gets distributed in the way you planned. It also eliminates the possibility that they may never find something of importance and it could eventually go to the state.

4. Choose An Experienced Estate Attorney to Prepare Your Will
Planning your Estate can be a little complex at times. In order to make sure you get it done correctly and to make sure your Will can withstand a challenge after you’re gone, it’s important to make certain you hire an experienced Estate Planning attorney who is capable of helping you plan and prepare your estate and who can help you properly execute your Will so it cannot be overturned by anyone in the future.

5. Make Provisions For The Children
Most states make provision for the nomination and appointment of a Guardian for your children should you pass away before they are emancipated. Usually this is done within the context of your Will, but each state may have different requirements for this provision so check with your state.

6. Consider Estate Taxes
As of 2009, the amount an individual can leave to heirs free of federal estate taxes is $3.5 million. Be aware that this figure changes from time to time because Congress is always changing them. Also, each state has its own laws regarding taxation of Estates. Many states follow the same rule as the federal rules, but not all do. Make sure to check with your particular state in which you expect to reside at the time of your passing.

7. Special Needs Children Need Special Help
If you have a special needs child who will need additional Health Care or is somehow incapacitated, it would be best to provide a Trust for their Health Care after you are gone. Make sure to ask your Estate Planner about the tax ramifications of such a provision since they’ve recently changed.

8. Protect Them from Themselves
Many times, parents know their children better than they know themselves. Sometimes it’s necessary to protect their inheritance from themselves. In such a case, you may want to establish a Trust for them. Usually, it’s best to not turn over an entire inheritance until such time as beneficiaries reach at least age 25. By then, they are usually more mature and won’t blow it on “good times, fast cars and kid’s stuff”. You can always make some provision for them to deduct some portion of their inheritance for schooling and basic living expenses as long as the Trustee approves them. Sometimes, the Probate Court or Surrogates Court must also pass on such withdrawals. The whole idea is to make sure they have something left to help them once they mature and want to start a family or buy a home. The important aspect of a Trust is to be sure to appoint a loyal and trustworthy Trustee to oversee the trust assets.

9. Consider Your Plans for Insurance Policies, IRA’s and Bank Accounts
Often Bank Accounts and Insurance policies have beneficiaries or joint beneficiaries that can then pass outside of the Will and your Estate. This can sometimes change the actual percentages of distribution of your Estate and make it different than you wanted. You must make certain to include those amounts that will pass outside your will in your calculations and distribution plans so they are consistent with your overall directions.

10. Alternative Families Need Special Planning
Estate Planning is especially important when you are living an alternative lifestyle. It becomes even more important when you want certain of your wishes honored, both before and after you’re gone. This is especially true in states where gay marriage has not been legalized. In many situations, families of a departed partner may intercede and determine how they want everything to go in spite of how that partner intends to have his/her estate distributed. Therefore, if you have specific instructions for treatment when you are ill or want your estate to be distributed the way you want it, make sure all your wishes are contained within your Will and other Estate planning documents before you become incapacitated or your wishes may not be honored. Remember, if you die without a Will, your assets are divided according to your state laws, not necessarily according to your wish.

11. Have Your Will Signing Videotaped
That’s right. Ask to have the Will signing videotaped so that everyone sees you as you tell the lawyer that you know exactly what you’re doing and they can also see that you’re of sound mind when you’re doing it. This can be very effective at eliminating Will contests quickly and inexpensively. It may cost you a bit more now, but it will pay off later.

12. Leave a Personal Video Message
Most people never tell those they love that they love them. Once you die, it’s too late. Take a few minutes at the time you execute your Will to leave a personal message to your heirs telling them that you love them. You may also tell them that while they may not like what you did in your Will, it is your property to do with as you see fit and ask them to honor your last requests. That may help to stop Will contests and in-fighting between siblings after you’re gone.

13. What do you do if you have no heirs? What then?
When you have nobody to leave your Estate, it’s time to consider establishing a Trust for a worthy cause or a direct bequest to specific charities that you endorse. You may even wish to make any bequest anonymous. This is usually a better alternative than having the state distribute your hard earned money to a distant relative that never gave you a second thought until after you were gone. Take care of those who need it the most.

14. Leave a Personal Written Message
For those who don’t leave a video message, then leave a final letter expressing your feelings towards your loved ones. Tell them all the wonderful things you’ve forgotten or put off all these years. They will find it very comforting to finally hear how much you’ve loved them all along, but never got around to telling them. It will help their mourning period and their own processing. It’s a very loving thing to do and you’ll feel better knowing you’ve finally said it to them.

15. Review and Update Your Plan Regularly
Things change with the passage of time. As time passes, so do our friends and circumstances change. Make sure that your Will reflects your true intent at the time of your demise. Too many times a Will that was made out 20 years ago surfaces and gives an Estate to people the deceased hasn’t spoken to in 15 years. Make sure that you review your Will regularly and change it when it is appropriate.