Articles of Interest

Estate Planning Zone

by Jeff Cory, CFP, ChFC,
Executive Director

When it comes to planning your estate, be careful that you receive the proper professional legal, tax, and financial advice to ensure your estate is effectively administered - and to minimize costs, taxes, and heartache for your heirs and beneficiaries. Here are some red flags you want to mindful of:

1. Have you updated your estate plan? We all need an up-to-date estate plan to ensure our current goals and objectives are carried out. If you haven't taken a look at your will, revocable living trust, or advanced directives (durable power of attorney, living will, designation of health care surrogate) in recent years, it would be wise to take a few moments to review these important documents, to take into consideration changes in the tax law, your health, and family situation.

2. Do you have too much or the wrong property held jointly? Joint ownership of property does avoid probate, but will not avoid estate taxes. Also, assets held as joint tenants will go to the joint owner at your death, regardless of what your will states.

3. Have you planned for the possibility of incapacity? Many people do not plan adequately for their incapacity. In fact, nearly two out of five people will have some period of incapacity during their lifetime. Be prepared with a current Durable Power of Attorney, Designation of Health Care Surrogate, and Living Will.

4. Have you funded your Revocable Living Trust? The Living Trust is only a tool for avoiding probate if your assets have been transferred into the name of the trust prior to your death. If you have a living trust, review the current title on your bank and brokerage accounts, real estate, and other property.

5. Do you know where all of your important papers are? Not only is it important for you to know where all of your vital records are, but just as important for your Durable Power of Attorney, Personal Representative, or Successor Trustee. Make a list of the important people in your life; family members, attorney, physicians, CPA, etc. and include an up-to-date list of current assets, insurance, location of safe deposit box, income sources including pensions and retirement plans, and funeral arrangements, in case of an emergency.

6. Have you named the "right person" to handle your affairs? While most people will choose a family member or loved one to assist them during a time of need, you may want to consider a bank or trust department for their expertise, professionalism, and neutrality. The Legacy Foundation at Shell Point also provides services to Shell Point residents in bill paying, financial management and estate administration.

For a complimentary review of your current estate plan, please contact Jeff Cory of The Legacy Foundation at 466-8484.