ESTATE PLANNING – 9 Steps To Make Sure You’re Prepared
Having your estate planning and financial affairs in order is essential, especially when approaching advanced age, but it’s all so overwhelming. How do you go about putting your business in order? We have created this post, Estate Planning: 9 Steps to Make Sure you’re prepared to help you get through this challenge. No one knows when their time will come. Whether you’re pushing late into your 70s or are a spring chicken, it’s best to prepare by doing estate planning. Also, a debilitating illness or car accident can cripple anyone without warning, leaving them unable to manage their finances or express their needs. Establishing a clear protocol for the distribution of assets and medical preferences will ease a painful time for family members while ensuring that your will is complete. With these 9 steps, you are on your way.
1. Take Inventory of Your Estate
List every item you own that’s worth $100 or more. First, list all physical items like your TV set, jewelry collection, vehicles, guns, and computers. Next, list all non-physical assets, including 401k plans, IRA assets, and all existing insurance policies, such as homeowners, auto, and health insurance.
List all open accounts in your name with Elevate Credit Union and any other financial institution. While completing this step, check that all beneficiaries listed on these accounts are the ones you want and that all additional information is correct.
2. Assemble a List of All Your Credit Cards & Debts
Create a list of your open credit cards and other debts. Include auto loans, existing mortgages, home equity lines of credit, student loans, and any other debts you may have. It’s a good idea to run a free credit report once a year; this will remind you about any open credit cards you may have forgotten.
3. Select an Estate Administrator
Choose someone you trust entirely to be responsible for executing your will. Think carefully before choosing your administrator, and bear in mind that emotions accompanying your death may impair this person’s decision-making ability.
4. Send a Copy of Your Assets List to Your Estate Administrator
When you’ve completed your lists, date and sign them. Make at least three copies of each file; give the original to your estate administrator, and give another copy to your spouse if you’re married. Have your spouse place the list in a safe-deposit box and keep another copy in a safe place at home.
5. Review all Retirement Accounts, Insurance Policies, and Annuities
Every account in which you list beneficiaries will be bequeathed to the person(s) or entity designated on the actual account upon your death, regardless of how you contain these accounts in your will. Take the time now to review all such accounts, policies, and annuities to be sure they list your chosen beneficiaries.
6. Assign Transfer-On-Death Designations
Prevent your assets from being distributed through an expensive court process by merely assigning them a TOD, or transfer-on-death, the beneficiary. Most accounts are easy to set up with a TOD. Call or stop by Elevate Credit Union to find out how you can set up a TOD beneficiary on your accounts.
7. Create A Will
Wills are not just for senior citizens – everyone over 18 should have one. This document will guide the distribution of your assets upon death, preventing thorny family feuds and expensive court proceedings. While creating your will, assign power of attorney to a designated lawyer, choose a health-care surrogate, and select guardians for your kids and pets.
Sign and date your will. Have two witnesses sign your will. Finally, obtain a notarization of the final draft. Give one copy to your designated estate administrator, keep another copy in a safe place at home and give your spouse a third copy to be held in a safe-deposit box.
8. Create A Living Will
You may be strong and healthy now, but there’s no guarantee you’ll always be that way. A debilitating disease or a car accident can incapacitate you, leaving you unable to care for yourself or to express your needs. At that point, having a living will or medical power of attorney will be a real lifesaver. This document will stipulate who you’ve chosen to make medical decisions on your behalf. It will also specify whether you’d like to be resuscitated, put on life support, and have other invasive procedures done on your behalf. Having a living will take a tremendous burden off your family during an already trying time.
9. Create An Estate-Information Packet
Now that you’ve gathered all your financial information and created your wills, it’s time to organize them. While you may know where all necessary documents are, it can be difficult for someone else to locate them when circumstances make it essential. By creating one master document containing all vital information, you’ll save your loved ones hours of work.
Your estate information packet should include details like your Social Security number, the location of your living will, your designated estate administrator, a list of all accounts you own, and your investments.
With these 9 Steps to make sure you’re prepared, your Estate Planning is headed in the right direction. This link will help you find more information about AARP Estate Planning. And we can help. Call, Text, or come in if you have questions. Elevate has notarization services and helps with free budget counseling and savings. Now that you’ve taken care of the hard work, you can get back on your bucket list of things to do before you move on. Do you want to swim with dolphins? Visit the Alps? Go for it — the sky’s the limit!
