Estate Planning Checklist
One of the greatest gifts you can leave your survivors is an organized estate. Ensure your wishes will be carried out with a sound estate plan and you may be able to minimize gift and estate taxes and preserve more of your assets for those you care about.
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Make a will. In a will, you state who you want to inherit your property and name a guardian to care for your young children should something happen to you. Otherwise, state laws and courts make those decisions for you. |
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Establish a trust. A trust is a legal entity that holds property designated by you for the benefit of you and your beneficiaries. You should name an adult to manage any money and property your minor children may inherit from you. You may want to limit your spouse's flexibility regarding an inheritance by use of a trust. You may want to hold your property in a living trust so your survivors won't have to go through probate court, often a time-consuming and expensive process. |
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Make health care directives. Writing out your wishes for health care can protect you if you become unable to make medical decisions for yourself. Health care directives include a health care declaration ("living will") and a health care power of attorney, which gives someone you choose the power to make decisions if you can't. |
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Make a financial power of attorney. With a durable power of attorney for finances, you can give a trusted person authority to handle your finances and property if you become incapacitated and unable to handle your own affairs. |
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Consider life insurance. If you have young children or own a house, or if you may owe significant debts or estate taxes when you die, life insurance may be a good idea. Consider an irrevocable life insurance trust to exclude the insurance proceeds from being taxed as part of your estate. |
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Protect your business. If you are a sole owner of a business, you should have a succession plan. If you own a business with others, you should have a buyout agreement. Business owners can predetermine what will happen to assets through legal agreements and life insurance on business partners. |
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Protect Cherished Family Assets Such as Vacation Homes. Consider estate planning for the continued enjoyment of the vacation home through a family partnership or trust. |
